KUALA LUMPUR (Dec 14): KPower Bhd rose as much as 15 sen or 36.59% to a high of 56 sen on Tuesday (Dec 14) after Serba Dinamik Holdings Bhd group managing director and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah resigned as its non-independent non-executive chairman.
The stock, which was among the most actively traded of the day with 43.53 million shares done, later pared about half its gains to settle at 49 sen — still up eight sen or 19.51% — giving the group a market capitalisation of RM233.4 million.
KPower said in a statement on Tuesday that the resignation was effective immediately, and that following his resignation, group deputy chairman Mustakim Mat Nun will temporarily assume the chairman's post. Mustakim holds 6.653% direct interest in KPower, with an indirect 8.198% held via Grand Deal Vision Sdn Bhd.
According to KPower, Abdul Karim was appointed to KPower's board on June 28, 2019 and redesignated as its non-independent non-executive chairman on Nov 28, 2019.
Abdul Karim, together with Grand Deal Vision Sdn Bhd, emerged as the majority shareholders of KPower after assuming majority ownership in 2019.
Since then, Abdul Karim and the new management team transformed the group from a loss-making manufacturing business into a renowned and indomitable player in the renewable energy industry, said KPower.
Under the new leadership, the group also diversified its business into the healthcare and logistics business segments.
“It is with a heavy heart that I accept Datuk Karim’s resignation but at the same time I am humbled by his confidence in the team and the management,” said Mustakim.
“On behalf of the KPower group of companies, I would like to thank Datuk Karim for his outstanding service, dedication and contribution during his tenure here. We have been fortunate to have had his wise guidance throughout these years. This has contributed to KPower’s remarkable transformation into a major player in the renewable energy industry,” he added.
“We have been working tirelessly behind the scenes as we continue to chart our course for the year ahead and beyond. We remain committed to reinforcing our footing in the renewable energy segment by establishing ourselves as a one-stop centre for renewable energy solutions, serving the entire renewable energy spectrum, including waste-to-energy and wind energy,” he said.
According to KPower filing on Monday, Abdul Karim resigned as its chairman “in order to pursue other matters”.
He is also the non-independent non-executive chairman of Sarawak Consolidated Industries Bhd.
Abdul Karim has hogged the limelight since May as Serba Dinamik, which he founded, became embroiled in an audit issue with KPMG.
Abdul Karim, who holds a 21.23% stake in Serba Dinamik, also has a 15.23% stake in KPower Bhd and a 24% stake in Sarawak Consolidated Industries.