Serba Dinamik billionaire founder, Karim, buys stake in Powernet – Business News



[ad_1]

KUALA LUMPUR: It is said that Datuk Mohd Abdul Karim Abdullah, the founder of Serba Dinamik Holdings Bhd and one of the 40 largest in Malaysia, bought a large 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 30 percent equity stake in Powernet from substantial shareholders of SSF Home Builder Sdn Bhd and Datuk Lee Chong Hoon – brother of national badminton hero Datuk Lee Chong Wei.

The deal was made via out-of-market transactions.

Stock market data today showed that 20.2 million Powernet shares were traded through direct trading on RM1 each. On Wednesday, 2.8 million shares were crossed, also in RM1 each.

Shares of Powernet rose 2.5 sen to 85.5 sen at 15:45. In the accumulated of the year, the stock increased 145%.

The acquisition by Karim followed an announcement by Powernet on June 10 that a major shareholder and a director are finalizing a stock sale agreement.

Powernet's share structure is fragmented, with SSF Home Builder holding 10.99% and Chong Hoon with 8.96% before recent transactions. The rest of the company's stock is distributed among small investors.

With key outside shareholders, Karim is likely to have seized control of the company, which has a relatively small operation.

Powernet is involved in fabric knitting and property development, but the company has been losing money for the past five years. In the first nine months of the current fiscal year ended June 30, 2019, the company reported a loss of RM1.8 million on revenue of RM1.27 thousand.

Karim's purchase of a substantial stake in a significant premium may signal a turnaround for the company.

"Powernet may be your next vehicle listed," a source said. It would be interesting to see what Karim has in store for Powernet.

[ad_2]

Source link