KUALA LUMPUR: Datuk Mohd Abdul Karim Abdullah, the founder of Serba Dinamik Holdings Bhd and one of the top 40 richest Malaysian, is said to have bought a big stake in Kumpulan Powernet Bhd, his second major purchase in less than a month.
Sources said the 54-year old billionaire and his business partner have acquired a combined 30% equity interest in Powernet from substantial shareholders SSF Home Builder Sdn Bhd and Datuk Lee Chong Hoon - the brother of national badminton hero Datuk Lee Chong Wei.
The deal was done via off-market transactions.
Data from the stock exchange today showed 20.2 million shares in Powernet were transacted via direct deal at RM1 each. On Wednesday, 2.8 million shares were crossed, also at RM1 each.
Shares in Powernet were up 2.5 sen to 85.5 sen at 3.45pm. Year-to-date, the stock has risen 145%.
The acquisition by Karim followed an announcement by Powernet on June 10 that a major shareholder and a director are finalising a share sale agreement.
Powernet's shareholding structure is fragmented, with SSF Home Builder holding 10.99% and Chong Hoon at 8.96% prior to the recent transactions. The rest of company's shares are spread among smaller investors.
With the major shareholders out, it is likely that Karim has gained control of the company, which has a relatively very small operation.
Powernet is involved in manufacturing of wrap-knitted fabrics and property development, but the company has been losing money for the past five years. For the first nine-month of current financial year ending June 30, 2019, the company posted a loss RM1.8mil on revenue of RM1.27mil.
Karim's purchase of a substantial stake at a significant premium may signal a turnaround for the company.
"Powernet could be his next listed vehicle," a source said. It would be interesting to see what Karim has in store for Powernet.
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