This article first appeared in The Edge Financial Daily on October 3, 2019

KUALA LUMPUR: Serba Dinamik Holdings Bhd’s group managing director (MD) and chief executive officer Datuk Dr Mohd Abdul Karim Abdullah has raised his stake in Kumpulan Powernet Bhd (KPB) from 20.04% to 36.1% following several direct business transactions yesterday, triggering a mandatory general offer (MGO) for the rest of the shares he does not hold in the company.

This marks the second time this year that the billionaire’s investment has triggered an MGO, following the one he had to launch for Sarawak Consolidated Industries Bhd (SCIB) after he emerged as its largest shareholder with a 42.84% stake. The MGO closed with his stake rising to 50.49%. He took over SCIB’s chairman post on Tuesday.

As for KPB, the additional stake he acquired involved 12.25 million shares, which crossed at RM1 per share or RM12.25 million in total, yesterday.

As his stake is now over the 33% threshold, he is obliged to extend the MGO at the same price for which he bought the additional stake in KPB, a company involved in the production of wrap-knitted fabrics and property development.

A notice of the MGO was sent by RHB Investment Bank Bhd on behalf of Abdul Karim to KPB yesterday, and filed to Bursa Malaysia. The notice states that the offeror, who is also KPB’s deputy chairman, intends to maintain the company’s listing on the Main Market of Bursa Malaysia.

Acting together with him in the offer are KPB MD Mustakim Mat Nun and Sarah Azreen Abdul Samat, who jointly control Grand Deal Vision Sdn Bhd, which has 10.18% in KPB. The other persons acting in concert (PACs) with him are: Rosland Othman (0.32%), and Azhan Azmi (0.18%), pushing the PACs’ portion to 10.68%.

“The [KPB] board will hold a board meeting to deliberate the offer and make an announcement in due course,” said KPB in the filing.

Trading in KPB shares was suspended for an hour between 2.30pm and 3.30pm yesterday for the MGO announcement. On resumption, the stock closed seven sen higher at 99 sen, giving it a market capitalisation of RM75.39 million.