Serba Dinamik to raise RM515m from private placement to repay bank borrowings, fund projects

KUALA LUMPUR (Dec 8): Serba Dinamik Holdings Bhd is looking to raise about RM515.35 million from its private placement to repay bank borrowings and to partly finance its projects.

In a bourse filing, the group said it would be issuing up to 336.83 million new shares, representing 10% of its issued share capital of 3.37 billion shares as at Nov 30.

The estimated proceeds of RM515.35 million is based on an illustrative issue price of RM1.35 per share. Of this amount, RM100 million will be used to partially repay RM626.99 million worth of borrowings.

Meanwhile, another RM100 million would be used for capital expenditure. Specifically, it would be used for the group’s Teluk Ramunia Yard in Johor, which will involve the construction of building facilities, purchase of heavy machinery and equipment and any incidental expenses.

The capex deployed is required to restore the Teluk Ramunia Yard’s operational capacity of 50,000 tonnes and to enhance the safety and integrity of the facility’s infrastructure.

Serba Dinamik will also be using RM303.46 million for projects in Abu Dhabi. About 55% of the RM303.46 million would be used for the construction of an innovation hub, academic campus, related facilities and information technology infrastructure in Abu Dhabi, while the balance would be used for the construction of a data centre and its related facilities, infrastructure and landscaping in the emirate, as well as working capital.

Serba Dinamik said its managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah, who is also the group’s largest shareholder, may participate in the book-building exercise for the placement.

As such, an extraordinary general meeting (EGM) will be held for the  placement of 101.05 million shares to Abdul Karim, which will be part of the private placement.

Abdul Karim, alongside directors Datuk Abdul Kadier Sahib and Datuk Awang Daud Awang Putera, are interested parties in the placement of shares to Abdul Karim. They will abstain from voting on the matter at board meetings and at the EGM.

The group said Abdul Karim's stake cannot exceed 32.9%, or the collective shareholding of Abdul Karim, Abdul Kadier and Awang Daud cannot increase by more than 2% in the six months after the placement is completed, in the event their shareholders are in excess of 33% prior to the placement of shares to Abdul Karim.

“This is to ensure that Dato’ Karim and/or persons connected with him will not trigger the mandatory take-over offer obligation under the Rules on Take-Overs, Mergers and Compulsory Acquisitions, read together with the Malaysian Code on Take-Overs and Mergers 2016 issued by the Securities Commission Malaysia, upon completion of the proposed private placement,” the group added.

Serba Dinamik’s share price finished 2.05% or four sen lower at RM1.91 today, valuing the group at RM6.48 billion.