KUALA LUMPUR (May 26): KPower Bhd says today that the group and Serba Dinamik Holdings Bhd are two distinct and separate entities that are run independently of each other, save for having the same major shareholder and director in Datuk Dr Mohd Karim Abdullah.
In a statement, KPower said Mohd Karim, as its non-independent and non-executive chairman, is also not involved in the day-to-day operations or management of the group. Mohd Karim is group managing director and chief executive officer at Serba Dinamik. Mohd Karim holds a 26.93% stake in Serba Dinamik as at March 19, and has 32.14% in KPower as at Jan 14.
"With the exception of sharing the same company secretary, KPower also engages a different set of professional advisors such as external auditors, transaction lawyers, and public relations and investor relations firms for the group’s business and other corporate matters," KPower said.
It said it was making the clarification after receiving various inquiries in relation to Serba Dinamik's announcement on Tuesday (May 25) that the latter was starting a special independent review, after its board was informed by its external auditors on some matters pertaining to statutory audit.
In its announcement filed to Bursa Malaysia, Serba Dinamik said it was in the midst of appointing an independent firm to start the special review to assess the veracity and accuracy of the matters, but did not divulge what they were. According to Serba Dinamik's Annual Report 2019, its auditor is KPMG PLT.
KPower, meanwhile, said it is headed by group managing director Mustakim Mat Nun, and is supported by a team of professional managers that do not hold any position in Serba Dinamik and vice versa.
"To date, KPower has had no recurrent related party transactions (RRPTs) with Serba Dinamik. Any and all RRPTs have only been between the Group and OHP Group Sdn Bhd, a private vehicle owned by the group’s managing director, and the group’s chief financial officer Amirul Afif Abd Aziz.
"All projects sourced by KPower is without any involvement from Serba Dinamik," it added.
KPower shares closed 4 sen higher at RM1.69 on Tuesday (May 25), giving it a market capitalisation of RM764.44 million, while Serba Dinamik settled unchanged at RM1.61, valuing the group at RM6 billion.