UPLIFTMENT OF SUSPENSION
Reference is made to the media release by Bursa Malaysia Securities Berhad (“Bursa Securities”) on 22 October 2021, wherein a directive was issued to SERBADK to announce the findings from the Factual Findings Update dated 30 September 2021 (“FFU”) (“Bursa’s Directive”).
Arising from SERBADK’s failure to comply with Bursa’s Directive, Bursa Securities had on 27 October 2021 suspended the trading of SERBADK’s securities. Subsequently, Bursa Securities had also sought to enforce Bursa’s Directive via legal action commenced pursuant to Section 360 of the Capital Markets & Services Act 2007 where the High Court had on 7 February 2022 granted an order to compel SERBADK to, among others, comply with Bursa’s Directive (“Order”). SERBADK’s efforts to stay the Order pending its appeal had been dismissed by the High Court and the Court of Appeal on 14 February 2022 and 11 April 2022 respectively.
Bursa Securities wishes to draw investors’ attention to SERBADK’s announcement dated 21 April 2022, entitled “Court Order Dated 7 February 2022” (“Announcement”) where SERBADK had announced, among others, the findings from the FFU in accordance with the Order. This is in compliance with Bursa’s Directive.
Therefore, Bursa Securities will be uplifting the suspension of trading of SERBADK’s securities on 9 May 2022 at 9.00 am. Please refer to Listing Circular dated 29 April 2022 for further details.
CLARIFICATION ON SERBADK’S ANNOUNCEMENT
Bursa Securities wishes to clarify the following:
1. In addition to announcing the findings of the FFU, the Announcement contained SERBADK’s views, comments and rebuttals since May 2021. Bursa Securities wishes to state that these views, comments and rebuttals do not represent Bursa Securities’ views on the matter and Bursa Securities will not be responsible to check the accuracy, completeness or adequacy of any of the same.
2. Bursa Securities, however, wishes to highlight that the statements made in the Announcement relating to the circumstances surrounding the appointment of Ernst & Young Consulting Sdn Bhd (“EY”), the terms of EY’s appointment, the fact that EY did not sign the FFU and the lack of powers on the part of Bursa Securities to issue Bursa’s Directive to SERBADK, were also raised by SERBADK as issues in the civil proceedings between Bursa Securities and SERBADK in Originating Summons No. WA-24NCC-500-
11/2021 and WA-24NCC-535-11/2021. These issues have been dismissed by the High Court in the two respective sets of civil proceedings.
3. Bursa Securities wishes to reiterate that the Order also required among others, SERBADK to:
- Announce the impact of the FFU by EY pursuant to the Special Independent Review (“SIR”), on the business, financial status and operation of SERBADK;
- Complete the SIR with EY, and in the event of the premature resignation of EY to continue as Independent Reviewer (“IR”), or termination of EY as IR by SERBADK, an order directing SERBADK to appoint an independent reviewer with international affiliation, which has adequate experience and resources and with the presence in Bahrain and such other overseas locations, where the customers and suppliers which were highlighted by KPMG are located, to replace EY as IR within 14 market days from the date of the Order, to complete the SIR; and
- Provide or instruct its agent or servants to furnish bi–weekly written updates of the SIR to Bursa Securities, whether formally demanded or not by Bursa Securities.
These requirements in the Order have yet to be complied, or satisfactorily complied, with.
INVESTOR ALERT
Bursa Securities wishes to draw investors’ attention that:
1. The SIR is not completed or finalised to-date; and
2. The Independent Auditors of SERBADK, Nexia SSY PLT (“Nexia”), who were engaged by SERBADK to audit the financial statements of SERBADK for financial period ended 30 June 2021, did not express an opinion on the said financial statements. This is because Nexia had not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.
Accordingly, Bursa Securities would like to advise investors to exercise caution and to make informed decisions in trading of the securities of SERBADK.
As a frontline regulator, Bursa Securities is entitled to exercise its power pursuant to the Main Market Listing Requirements (“MMLR”) in the interest of maintaining an orderly and fair market. Bursa Securities will continue to take the necessary actions to discharge its role and responsibilities in regulating the conduct and enforcing compliance with the continuing obligations of listed issuers pursuant to the MMLR.
