Abdul Karim ceases to be substantial shareholder of KPower

Abdul Karim ceases to be substantial shareholder of KPower
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KUALA LUMPUR (Jan 17): Datuk Mohd Abdul Karim Abdullah (pictured) has ceased to be a substantial shareholder in construction and engineering solutions player KPower Bhd (formerly Kumpulan Powernet Bhd), the company’s filing showed.

According to the filing, Abdul Karim had disposed of 79.05 million shares in a series of transactions that took place between February 2021 and January 2022, and KPower had received notice of his cessation as a major shareholder on Jan 13.

The filing did not indicate the value of his transactions.

In its first quarter ended Sept 30, 2021 (1QFY22), KPower had reported a 61.35% drop in net profit to RM3.15 million from RM8.15 million in the corresponding quarter last year, due to movement restrictions to curb the Covid-19 pandemic that disrupted the progress of its projects in Malaysia and Indonesia.

Its quarterly revenue was 23% lower at RM43.78 million from RM57.06 million previously, as the contribution from construction-related activities fell due to movement restrictions, while its property development and investment segment recorded no revenue as development works were halted during the Movement Control Order period.

To recap, Abdul Karim had resigned as KPower’s non-independent non-executive chairman on Dec 14 “in order to pursue other matters”.

A month earlier on Nov 24, Abdul Karim had sold 4.606% or 25 million shares in KPower for about RM10.38 million to trim his stake down to 15.163% or 82.3 million shares.

At one point, Abdul Karim had amassed as much as 153.82 million shares which equated to a 28.338% stake in KPower, based on Bloomberg data.

Abdul Karim, who is also the Managing Director and CEO of Serba Dinamik Bhd, is currently facing a charge by the Securities Commission Malaysia in relation to the oil and gas outfit's submission of a false financial statement to Bursa Malaysia.

The case will be heard on Jan 27.

At the midday break, KPower shares were half sen or 1.23% higher at 41 sen, giving it a market capitalisation of RM219.83 million.

KPower shares were trading at RM2.80 a year ago, and have declined by 85.36% since.

Lam Jian Wyn