SERBA Dinamik Holdings Bhd believes that it possesses concrete reasons for Bursa Malaysia Securities Bhd to lift the suspension of its shares/warrants which has come to effect since the second trading session last Friday (Oct 22).

In a letter to the market regulator dated Oct 27 sighted by FocusM, the company’s chairman Datuk Ilyas Mohamed described the market regulator’s suggestion that Serba Dinamik take steps to make an application for extension of time (EOT) as “an act which is in excess of power”. It is Serba Dinamik’s contention that Bursa has acted outside the limits of its power.

To re-cap, EY had staged a PowerPoint presentation on Oct 21 which was attended by three of Serba Dinamik’s independent non-executive directors (INEDs) in the presence of representatives from Bursa Malaysia.

However, the INEDs claimed that the briefing was merely “a preliminary finding which was inconclusive” with EY not reaching any conclusion, hence certainly not for them or anyone else to second guess the conclusion that EY may come to when it completes the SIR.

“At the moment, everything is very much a work-in-progress and in piece-meal basis, hence it’s very inappropriate to release the findings which otherwise would further cloud the achievement of our target rather than to resolve the problem at hand,” they collectively told FocusM.

“As this was only the preliminary findings, there was no copies of handouts or materials being circulated during the presentation … moreover, it was meant to be that way.”

In a media statement on Oct 22, Bursa Malaysia Securities had claimed that findings from the SIR’s Factual Findings Update as of Sept 30 had been communicated to three out of four of Serba Dinamik’s independent non-executive directors (INEDs) on Oct 21.

This has led to the market regulator issuing a directive under paragraph 2.23 of the Main Market Listing Requirements (MMLR) to Serba Dinamik to, among others, make an announcement on the findings from the Factual Findings Update by today (Oct 26).

Additionally, the market regulator also ruled that Serba Dinamik’s stock trading suspension which started at the outset of Friday’s (Oct 22) afternoon session will remain indefinitely until further notice until the company reveals the findings from the Factual Findings Update.

Ilyas further pointed out in his letter to Bursa Malaysia Securities that even though EY had delivered the purported “Factual Findings Update” to the INEDs in question two days later on Oct 23, the format of the document was merely in a PowerPoint slide format.

“The purported “Factual Findings Update” is a document without an author in that it is not signed off by anyone; had clearly indicated that it was not to be relied upon by anyone; and is not the same document that was presented to the INEDs at the briefing on Oct 21,” he noted.

Given that the purported “Factual Findings Update” is not a document made by Serba Dinamik or any of its directors, Ilyas contended that neither Serba Dinamik nor its directors is in a position to suggest that such a document would fall within the terms of paragraph 9.03 and 9.35A of the MMLR. 

Meanwhile, Bursa Malaysia Securities latest stance remains that Serba Dinamik has not complied with the directive to make an announcement on the findings from the Factual Findings Update on its Special Independent Review by Oct 26.

“Accordingly, the trading in the company’s securities shall be suspended with effect from 9am on Oct 27 (Wednesday),” Bursa Malaysia Securities pointed out in a letter to Serba Dinamik yesterday (Oct 27).

As the trading in the company’s securities has been suspended since 2.30pm on Oct 22, the suspension of trading will continue until further notice, added the market regulator. – Oct 28, 2021