PETALING JAYA: Serba Dinamik managing director and group CEO Datuk Mohd Karim Abdullah (pic) and his parties acting in concert (PAC) now control some 50.09% of Kumpulan Powernet Bhd following further acquisitions in the company last week.
In a filing with Bursa Malaysia yesterday, Kumpulan Powernet informed its shareholders that it had received a mandatory takeover offer by Karim.
Shares of Kumpulan Powernet have risen to a two-year high following the triggering of a mandatory general offer (MGO) after Karim purchased more shares in the company on Oct 2.
Year to date, shares of Kumpulan Powernet are up some 160% at its last price of 99 sen. At this price, Kumpulan Powernet has a market capitalisation of RM75.4mil.
Kumpulan Powernet is widely seen to be Karim’s next listed vehicle, and many are expecting it to replicate the same sort of success as Serba Dinamik.
Karim’s flagship company Serba Dinamik is one of the bigger oil and gas players with projects in Malaysia and the region.
He owns some 23% of Serba Dinamik, whereby his stake is valued at RM1.43bil.
Serba Dinamik’s share price has been on a virtual uptrend and is up 177% over the last five years.
Karim had on Oct 2 acquired an additional 12.25 million Powernet shares at RM1 each via several direct business transactions.
This raised his direct stake in the maker of warp-knitted fabrics from 20.04% to 36.13%.
Together with his other parties acting in concert, Abdul Karim now has a 50.09% controls of Powernet.
The parties acting in concert are Grand Deal Vision Sdn Bhd, Mustakim Mat Nun, Sarah Azreen Abdul Samat, Rosland Othman and Azhan Azmi.
Karim has extended his offer to buy out all remaining shareholders in the company at RM1 a share.
At RM1, this offer price is a premium of between 12.36% to 28.21% of Kumpulan Powernet’s five-day and 12-month volume weighted average price.
Karim intends to maintain the listing status of Powernet on the main market of Bursa Malaysia.
Mercury Securities Sdn Bhd has also been appointed as the independent adviser for this offer.
In June, StarBiz first reported that the 54-year-old billionaire and his business partner had 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.
Powernet is involved in the manufacturing of wrap-knitted fabrics, but the company has been losing money for the past five years.
The company finally turned around for its financial year (FY) ended June 30,2019 following five years of losses.
For its fourth quarter ended June 30,2019, Kumpulan Powernet made a net profit of RM2.3mil from a previous loss of RM1.4mil.
Revenue increased almost tenfold to RM11.97mil from RM1.28mil in the same period previously.
The profit made was contributed by the sale of units
under the property division and the effect of management restructuring exercise.
For the full year, the company was back in the black with a net profit of RM476,000 from a previous loss of RM5mil.
Revenue increased to RM13.24mil from RM5.73mil previously.
Kumpulan Powernet owns two freehold properties - one which is its office and factory in Bentong, Pahang, which has a net book value of RM12.85mil as of March 31,2016.
It also owns a student dwelling house in Liverpool, United Kingdom valued at RM8.27mil as of June 27,2018.
Looking ahead, the company had said that it will be seeking for opportunities in areas such as energy, utilities, infrastructure and logistics to further expand the group’s business activities.
“Moving forward, the group is expecting to strengthen its financial position with further recognition of income from the property division and potential new business from the mentioned segments, ” said Kumpulan Powernet in its earnings filing.
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