Bursa Malaysia's responds to Serba Dinamik legal action (8 November 2021)

Established in 1993, Serba Dinamik, through its subsidiaries, is an international energy services group providing integrated engineering solutions to the Oil & Gas, petrochemical, power generation industries, water & wastewater and utilities.

The company was once the darling of research houses until the audit saga which was started in mid-May 2021. Subsequently, Serba Dinamik decided to take legal action against KPMG, alleging that the external auditor had been negligent and breached its contractual and statutory duties to the company.

And, now, Serba Dinamik is taking legal action against Bursa Malaysia to challenge the stock exchange's directives concerning the requirement to conduct a special independent review and to disclose the findings of the review, arguing that the stock exchange is acting “in excess of power”.

Below is the statement from Bursa Malaysia which was received by Finance Malaysia today 9pm:

LEGAL ACTION AGAINST BURSA MALAYSIA SECURITIES BERHAD (“BURSA SECURITIES”) BY SERBA DINAMIK HOLDINGS BERHAD (“SERBADK”)

8 November 2021

Reference is made to the media releases by Bursa Securities on 22 October 2021 and 27 October 2021 in relation to the status update on the Special Independent Review of SERBADK and the trading suspension of SERBADK’s securities.

We wish to inform that Bursa Securities had on 5 November 2021 received the following documents:

(i) Unsealed Originating Summons;

(ii) Unsealed Notice of Application for an Interim Injunction; and

(iii) Affidavit affirmed by Dato’ Mohamed Ilyas Bin Pakeer Mohamed on 3.11.2021 in Support of the Originating Summons and Notice of Application for an Injunction.

Further, at the close of business on 8 November 2021, Bursa Securities has been served with the sealed copy of items (i) & (ii) above.

Bursa Securities wishes to state that as a frontline regulator of the capital market, Bursa Securities is entitled to exercise its power pursuant to the listing requirements in the interest of maintaining an orderly and fair market. Timely disclosure of material information is a key pillar of ensuring the market is well informed of the information and all investors are treated equally and able to trade on equal footing in terms of parity of disclosures. This is paramount to enable Bursa Securities to discharge its statutory duty.

With regard to the abovementioned legal proceeding, Bursa Securities has engaged a legal counsel to advise on this matter and the next course of action. Bursa Securities will be defending its position vigorously and will not abdicate its statutory roles and functions in the marketplace.

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