KUALA LUMPUR (Feb 23): KNM Group Bhd’s major shareholder MAA Group Bhd will fork out RM2.1 million to pay the salary of the beleaguered oil and gas (O&G) outfit’s CEO Ravindrasingham Balasingham.

According to a bourse filing on Friday, MAA, which owns a 10.81% stake in KNM, has been paying Ravindrasingham’s remuneration since his appointment on November 8, 2022, and will continue to do so until his contract expires on November 8, 2024.

MAA said the group and KNM have inked a reimbursement agreement on Friday that will see MAA extending RM2.1 million in financial assistance to KNM for Ravindrasingham’s remuneration for the July 1, 2023-November 8, 2024 period.

Subsequently, KNM is to repay the RM2.1 million, in addition to 5% interest per annum, by Feb 8, 2025 — being three months after Nov 8 this year.  

On the rationale behind the financial assistance, MAA reasoned that it was necessary to alleviate KNM’s cash flow problems.

The provision of financial assistance is deemed to involve the interest of related parties, as KNM group non-executive chairman Tunku Datuk Yaacob Khyra, who controls an 11.75% stake in KNM, also controls a 41.82% stake in MAA via Melewar Equities Sdn Bhd and Melewar Acquisitions Ltd.

Meanwhile, MAA announced that it has fallen into the red with a net loss of RM2.5 million for the second quarter ended Dec 31, 2023 (2QFY2024) versus a net profit of RM8.48 million a year ago, as revenue declined by 6.98% to RM66.49 million from RM71.47 million previously.

Shares in MAA closed one sen or 2.67% lower at 36.5 sen on Friday, valuing the group at RM95 million.

KNM’s shares ended half a sen or 5.88% higher at nine sen, giving the group a market capitalisation of RM343.9 million.