KUALA LUMPUR (May 27): KPower Bhd fell as much as 27 sen or 15.98% to RM1.42 this morning, after Serba Dinamik Holdings Bhd said on Tuesday it was commencing a special independent review after the board of directors was informed by its external auditor on some matters pertaining to statutory audit.

KPower's non-independent and non-executive chairman Datuk Dr Mohd Abdul Karim Abdullah is group managing director and chief executive officer of Serba Dinamik. Mohd Abdul Karim held a 26.93% stake in Serba Dinamik as at March 19, and had a 32.14% stake in KPower as at Jan 14.

At 10.56am, KPower pared some losses to RM1.50, but was still down by 19 sen or 11.23%. It was the fifth top loser this morning.

The stock, which was among the most actively traded counters, saw 37.89 million shares change hands.

KPower clarified in a statement yesterday that the group and Serba Dinamik were two distinct and separate entities running independently of each other, save for having the same major shareholder and director in Mohd Abdul Karim.

"With the exception of sharing the same company secretary, KPower also engages a different set of professional advisers such as external auditors, transaction lawyers, and public relations and investor relations firms for the group's business and other corporate matters," it said.

It also said KPower is headed by group managing director Mustakim Mat Nun and 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 are without any involvement from Serba Dinamik," it said.