CURSING his misfortune for having dumped RM50,000 to accumulate Serba Dinamik Holdings Bhd as the stock was cascading, a retail investor shared with FocusM how COVID-19 has been so kind to the global integrated oil & gas (O&G) outfit.

Referring to the company’s fifth annual general meeting (AGM) this coming Monday (Jan 31), he said Serba Dinamik is indeed very fortunate that the meeting is conducted virtually otherwise he cannot imagine “how physical the event will turn out to be”.

“Aside from COVID-19, the meeting’s date and time which coincides with the eve of Lunar New Year eve are rather auspicious to the company although the same cannot be said for its investors,” strategised the retail investor. “There could be less ‘tigers’ roaming at the meeting (referring to difficult investors).”

Nevertheless, a check with Serba Dinamik showed that registration for the forthcoming AGM has been overwhelming with “500 plus shareholders having registered which is a bigger number compared to the previous AGM”.

With legal suits, court cases, trading suspension, Practice Note 17 (PN17) classification and the pending special independent review (SIR) findings – to name a few ‘messes’ that the company is currently in – nobody can really foretell if investors are able to keep their emotions in check on Monday.

Surely, chairman Datuk Abdul Kadier Sahib – the company’s fourth chairman in a year after Datuk Mohamed Nor Abu Bakar, Datuk Mohamed Ilyas Pakeer Mohamed and Datuk Seri Mohamed Farid Abu Hassan – will have his hands full in crowd control (despite the meeting being a fully virtual affair).

He should at the very least be compassionate to investors who make their presence felt in the ungodly afternoon meeting (scheduled for 3pm). He should anticipate a boisterous affair with ‘tonnes’ of questions raised with regard to the fate of the company which suspension period has surpassed the three-month mark.

Recall that Serba Dinamik was last transacted at 35 sen at the close of the mid-day trading on Oct 22 prior to the trading suspension of its shares/warrants, hence giving the company a market capitalisation of RM1.3 bil.

Even before the individual investors have a chance ‘to interrogate’ the company’s board of directors, the Minority Shareholders Watch Group (MSWG) has made its presence felt.

It wants Serba Dinamik to shed light into the group’s financial liabilities with a carrying amount of RM4.53 bil, of which RM2.37 bil are due in less than one year, constituting 52.2 % of the group’s total financial liabilities.

“Please explain the reason for the high concentration of the group’s financial liabilities due less than one year,” requested the shareholder activism group. “Please explain how the group would be able to meet the financial obligation of the group’s financial liabilities and Sukuk Wakalah that are due in 2022.”

As they usher in the Year of the Water Tiger, investors might want to update themselves that managing director and CEO Datuk Mohd Abdul Karim Abdullah’s trial in relation to furnishing a false statement to Bursa Malaysia has been fixed for further case management on Feb 28 at the Sessions Court.

It was learned that during case management held on Thursday (Jan 27), the Sessions Court set the next case management date for the prosecution to hand over documents to the accused’s defence team.

The Securities Commission Malaysia (SC) was represented in the case by deputy public prosecutor Muhammad Izzat Fauzan while Abdul Karim was represented by Wan Aizuddin Wan Mohammed from Messrs Shafee & Co.

According to a Serba Dinamik spokesperson, the company’s AGM should convene immediately after it published its annual report (Serba Dinamik released its Annual Report 2021 on Jan 6) “and most importantly, the company needs to get all resolutions passed before it could proceed with the next course of action”. – Jan 28, 2022

https://focusmalaysia.my/agm-countdown-will-timing-of-serbas-meeting-drive-away-the-tigers/