
NEWLY delisted KNM Group Bhd said it has received overwhelming shareholder support for the proposed sale of Deutsche KNM GmbH (DKNM) to NGK Insulators Ltd of Japan, describing it as a ‘pivotal milestone’ in KNM’s turnaround and recovery journey.
A total of 93.74% of shareholders voted in favour of the resolution at its extraordinary general meeting (EGM) today, the company said in a statement.
The approval paves the way for KNM to move forward with the disposal of DKNM for €270 million (about RM1.3 billion) — a transaction that will significantly strengthen the group’s balance sheet by reducing its debt obligations and providing the necessary working capital to revitalise its Malaysian operations, it added.
KNM CEO Ravindrasingham Balasingham the company had invited the Minority Shareholders Watch Group (MSWG) to directly engage with minority shareholders present at the meeting.
MSWG observed the entire session and raised questions, all of which were addressed comprehensively by KNM’s board and management, according to the statement.
“They raised the issue of absence of an independent advise letter,” Ravi told The Malaysian Reserve when contacted after the meeting.
KNM is fresh out of a tussle with the local stock exchange. It was delisted from the Bursa Malaysia Securities, effective Nov 5, after failing to work its way out of the Practice Note 17 (PN17) status.
MAA Group Bhd (MAAG), which owns close to one-fifth of ailing KNM Group Bhd, had urged shareholders to support the sale of its German-based crown jewel as a way out of its financial predicament.
“”MAAG called this KNM’s EGM under 313 of Companies Act 2016. MAAG could not prepare a circular or an independent advise letter without getting access to inside information from KNM, which would be breaking other laws. So they produced a statement with 1,000 words as permitted by s323 of the Companies Act, based on publicly available information relevant to the resolution,’ he told The Malaysian Reserve.
In the same statement, Yaacob said closing the disposal of DKNM to NGK is a big step towards the turnaround of KNM Group, describing the shareholder support as the ‘last outstanding condition precedent which is ‘key to sealing this deal’. — TMR
The post KNM gets overwhelming shareholder support for Borsiq sale appeared first on The Malaysian Reserve.



