SERBA Dinamik Holdings Bhd has no intention to delay the release of its special independent review (SIR) Factual Findings Update as per the impression painted by Bursa Malaysia Securities Bhd in its media statement last Friday (Oct 22).
What really transpired was that three of the company’s independent non-executive directors (INEDs) had attended the presentation by the company’s special independent reviewer Ernst & Young Consulting Sdn Bhd (EY) on Oct 21 in the presence of representatives from Bursa Malaysia.
However, with the briefing being “a preliminary finding which was inconclusive”, the INEDs said EY has not reached any conclusion, hence certainly not for them or anyone else to second guess them.
“At the moment, everything is very much work-in-progress and in piece-meal basis, hence it’s very inappropriate to release the findings which otherwise would further cloud the achievement of our target rather than to resolve the problem at hand,” they collectively told FocusM.
“As this was only a preliminary findings, there was no copies of handouts or materials being circulated during the presentation … moreover, it was meant to be that way.
“The task of the SIR is to arrive at a conclusion as to what should be on the financial statements and what value could fairly be stated on the financial statements. On Oct 21, EY did not suggest that they were in a position do so.”
The trio were shedding more light into the global integrated oil & gas (O&G) service provider’s response to Bursa Malaysia Securities yesterday (Oct 25) that there were no documents or copy of any documents that fit the description of “Factual Findings Update as at Sept 30, 2021” given to the INEDs as of Oct 22.
In a media statement on Oct 22, Bursa Malaysia Securities has claimed that findings from the SIR’s Factual Findings Update as of Sept 30 have been communicated to three out of four of Serba Dinamik’s independent non-executive directors (INEDs) on Oct 21.
This has led to the market regulator issuing a directive under paragraph 2.23 of the Main Market Listing Requirements (MMLR) to Serba Dinamik to, among others, make an announcement on the findings from the Factual Findings Update by today (Oct 26).
Additionally, the market regulator also ruled that Serba Dinamik’s stock trading suspension which started at the outset of Friday’s (Oct 22) afternoon session will remain indefinitely until further notice until the company reveals the findings from the Factual Findings Update.
In its letter to Bursa Securities yesterday, Serba Dinamik further justified that its terms of engagement with EY dated July 2:
- Has provided that no work products will be distributed to any parties including the regulators before and/or after the status update; and (ii) prohibits any quoting or references to any report, any portion, summary or abstract thereof; and
- Any documents or report from EY does not fall within paragraph 9.03 and 9.35A of the MMLR.
In essence, Serba Dinamik contended that “EY is still in the midst of performing the special independent review”.
Very broadly, Serba Dinamik’s stance in its letter to Bursa Malaysia Securities’ yesterday suggests that there appears to be a significant gap as to what Bursa Malaysia had understood and what the INEDs had comprehended with regard to the event of Oct 21.
In a related development, Serba Dinamik noted that its board that Bursa Malaysia Securities has via its letter dated Oct 25 approved the company’s application for a one-month extension – from Oct 31 to Nov 30 – to issue the company’s Annual Report 2020 comprising its annual audited financial statements together with the auditors’ and directors’ report for the financial period ended June 30, 2021.
This is pursuant to Paragraph 9.23(1) of the Main Market Listing Requirements of Bursa Securities.
Serba Dinamik was last transacted at 35 sen at the close of Friday’s (Oct 22) mid-day trading prior to the trading suspension of its shares/warrants by Bursa Malaysia, giving the company a market capitalisation of RM1.31 bil. – Oct 26, 2021
