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Serba Dinamik unable to complete RM24m office building buy; deposit forfeited

KUALA LUMPUR (Nov 11): Serba Dinamik Holdings Bhd, which is currently involved in three lawsuits caused by the audit disputes it has with former auditor KPMG, is unable to complete its purchase of an eight-storey office building in Cyberjaya, according to the vendor Awanbiru Technology Bhd (formerly known as Prestariang Bhd).

Awanbiru said the RM24.2 million transaction was called off after Serba Dinamik failed to complete the purchase in accordance with the terms of the sale and purchase agreements (SPAs) inked in February.

The property in question is Block 12, Corporate Park, Star Sentral @ Cyberjaya.

Under a clause of the SPAs, the deposit of RM2.42 million paid by Serba Dinamik is also forfeited, Awanbiru said in a stock exchange filing.

“Subject to the vendor’s consent and discretion, the purchaser is allowed to purchase the property at the same price per the SPAs on or before April 30, 2022, less a discount of up to RM2.42 million adjusted for items described in the mutual termination agreement,” it added.

Serba Dinamik and Awanbiru’s unit Prestariang Systems Sdn Bhd had inked the SPAs on Feb 8.

On July 15, Serba Dinamik wrote to Prestariang Systems, requesting for an extension of time to pay the balance purchase consideration, which Awanbiru provided up until Oct 31.

To recap, KPMG in May alerted regulators on the discrepancies in Serba Dinamik's financials for the 12-month period ended Dec 31, 2020, involving transactions to the tune of multi-billion ringgit. The auditor quit after Serba Dinamik took legal action against it. 

The audit issues flagged by KPMG has casted spotlight on Serba Dinamik. Beside KPMG, the company has filed lawsuits to sue the stock exchange Bursa Malaysia and EY Consulting, which it appointed in July to conduct a special independent review on its financial accounts.

Serba Dinamik shares have been suspended from trading since Oct 22. The counter last traded at 35 sen, valuing the group at RM1.3 billion.

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