(Updated)

Serba Dinamik remains suspended, has not complied with directive, says Bursa

Serba Dinamik remains suspended, has not complied with directive, says Bursa
-A +A

KUALA LUMPUR (Oct 27): The suspension on the trading in Serba Dinamik Holdings Bhd's shares remains in effect as the company has not complied with the directive to make an announcement on the findings from the special independent review (SIR), said Bursa Malaysia Securities on Wednesday.

This follows Serba Dinamik's last update on the matter on Monday (Oct 25), when the oil and gas group denied that its directors had been given a "factual findings update" by Ernst & Young (EY), which is undertaking an independent review of the group's financial accounts.

"Kindly be advised that SERBADK has not complied with the directive to make an announcement on the findings from the factual findings update on the special independent review by Oct 26, 2021.

"Accordingly, the trading in the company's securities shall be suspended with effect from 9.00am, Wednesday, Oct 27, 2021. As the trading in the company's securities has been suspended since 2.30pm, Oct 22, 2021, the suspension of trading will continue until further notice," the bourse said in a filing on Wednesday.

In a separate statement later that day, Bursa reiterated that a listed issuer must make immediate public disclosure of any material information as stipulated in the Main Market Listing Requirements (MMLRs).

"Bursa Securities has advised SERBADK that the factual findings update on the SIR as at Sept 30 2021 (Factual Findings Update) is material information in accordance with paragraph 9.03 of the MMLR.

"Accordingly, it is imperative that this material information is disclosed comprehensively to the market in a timely manner. This is to provide clarity to the market to ensure an orderly and fair market.

"Based on our understanding, soft copies of the Factual Findings Update were provided to the independent non–executive directors (INEDs) of SERBADK on Oct 22 2021 and as requested by the INEDs, physical copies of the same were in addition, delivered to the INEDs on Oct 23, 2021," added Bursa in a media notification.

Previously, Bursa had asserted that details from the factual findings update as at Sept 30 on the special independent review were communicated to three out of four INEDs on Oct 21.

The regulator went on to set Oct 26 as the deadline for Serba Dinamik to announce the findings of the special independent review.

Serba Dinamik, in its filing on Oct 25, said EY was still in the midst of performing the special independent review and that the documents from the independent reviewer did not fall within paragraph 9.03 and 9.35(A) of the MMLRs, which relate to disclosure of information considered material, if it affects a company's share price and investor decision.

Serba Dinamik further shared that its terms of engagement with EY have "provided that no work products will be distributed to any parties including the regulators, before and/or after the status update".

The group was last traded at 35 sen prior to its suspension on Oct 22, translating into a market capitalisation of RM1.3 billion.

To receive CEO Morning Brief please click here.

Joyce Goh