KUALA LUMPUR (July 2): Serba Dinamik Holdings Bhd group managing director Datuk Dr Mohd Abdul Karim Abdullah has been forced to sell another 95 million shares, bringing the total number of shares sold this week to 203 million.
In a filing with the stock exchange, Serba Dinamik said he had disposed of the 95 million block on Tuesday (June 29), citing “forced selling” as the reason.
Following the latest disposal, his stake stands at 801.05 million shares, equivalent to a 21.594% equity stake in the group.
Previously, Serba Dinamik announced that he was forced to sell 61.7 million shares on Tuesday as well as another 46.3 million shares on Monday.
On Wednesday, the Employees Provident Fund (EPF) announced that it had ceased to be a substantial shareholder of Serba Dinamik after selling a block of 96 million shares or 2.57% on the open market on June 25.
On June 1, Kumpulan Wang Persaraan (Diperbadankan) (KWAP) had also ceased to be a substantial shareholder after disposing of 26.03 million shares, reducing its stake to 4.53% from 5.24% previously.
In a separate filing today, Serba Dinamik had announced its appointment of Ernst & Young Consulting Sdn Bhd (EY) as the special independent reviewer to assist the board in assessing the accuracy and veracity of the matters highlighted by its former external auditor KPMG PLT.
The scope of works of EY includes: to assess the transactions and balances with respect to 11 identified customers on sales transactions, trade receivables and materials on sites and to quantify the possible financial impact, if any, as well as to assess the validity and veracity of purchases from six identified local suppliers.
The independent reviewer is also tasked with assessing the veracity and validity of IT contracts or transactions entered into with the six identified customers and two identified suppliers, assessing the appropriateness of the revenue and costs recognised in the material financial year, and assisting the existence and validity of the transactions and balances of one identified customer and one identified supplier located in Bahrain.
KPMG had previously flagged discrepancies in Serba Dinamik’s accounts, involving transactions of approximately RM4.54 billion.
Abdul Karim has repeatedly stated that Serba Dinamik’s management has done nothing wrong in regard to the audit issues flagged by KPMG.
Serba Dinamik’s share price rose 0.5 sen or 1.3% today to close at 38.5 sen, giving a market capitalisation of RM1.43 billion.