MANY would surely assume that Serba Dinamik Holdings Bhd – reeling under the pressure of institutional investors – has resorted to withdraw the special notice from its non-independent non-executive Datuk Abdul Kadier Sahib to convene an extraordinary general meeting (EGM) to remove the company’s existing external auditor KPMG PLT.
But put it on another perspective, this could be the best win-win solution “to douse the inferno” which had bled both the company’s market capitalisation and not forgetting the pockets of many retail investors – particularly those who have bought into the company at its 52-week high of RM2.09 or even four-week high of RM1.65.
In its latest Bursa Malaysia filing, the global oil & gas (O&G) integrated engineering services provider said Abdul Kadier had retracted his special notice dated May 28 pursuant to Section 311 of the Companies Act 2016 which proposed the removal of KMPG and the appointment of a new auditors in BDO PLT.
“The board wishes to announce that the company had on June 2 received a notice from Abdul Kadier requesting for the above special notice to be withdrawn,” Serba Dinamik pointed out.
“The board has accepted the withdrawal notice and in view of the above development, the above matter is now considered closed.”
So much at stake
Recall that RM2.93 bil has been wiped out from Serba Dinamik’s market value since trading resumed on Monday (May 31) which culminated in the counter closing limit down at RM1.13 (down 48 sen or 30% from its last traded price of RM1.61 on May 28).
Yesterday (June 1), the stock barely survived a second limit down by closing 26.11% or 29.5 sen down to 83.5 sen.
Retail investors’ aside, the dumping by institutional investors is more worrisome for Serba Dinamik as the Institutional Investors Council (IIC) – in playing its stewardship role – has urged its members to vote against the resolution on the removal of KPMG at the company’s EGM.
Bear in mind that the Employees Provident Fund (EPF) holds a 10.16% interest in the company, followed by Kumpulan Wang Persaraan DiPerbadankan (KWAP) and Permodalan Nasional Bhd with 5.2% and 5.34% respectively.
Evidently, KWAP announced that it has ceased to be substantial shareholder of the company after having disposed 26.03 million Serba Dinamik shares on June 1 (it disposed 152,200 shares on May 31).
Thankfully, however, both head honcho Datuk Dr Mohd Abdul Karim Abdullah and Abdul Kadier has each provided the buffer by acquiring 5 million shares each in the open market.
Abdul Karim who is the company’s group managing director and CEO acquired 5 million shares in the open market on Monday (May 31) at RM1.13, thus raising his stake in the company to 27.07%.
Abdul Kadier chipped in with the same quantity of shares – also from the open market – today (June 2) at an average price of 88.4 sen which brings his stake in Serba Dinamik to 16.09%.
At the close of today’s trading, Serba Dinamik was down 1 sen or 1.2% with 418.13 million shares traded, thus valuing the company at RM3.07 bil. – June 2, 2021
