KUALA LUMPUR (Oct 7): KNM Group Bhd’s (KL:KNM) largest shareholder is pushing for shareholders to vote on the sale of its German unit, Deutsche KNM GmbH (DKNM), even though Bursa Malaysia has rejected the group’s plan — which includes the sale — to exit PN17 status.
In a filing on Tuesday, KNM said it has received a request from MAA Group Bhd, which owns more than 10% of KNM’s shares, to call for an extraordinary general meeting to vote on the €270 million (RM1.34 billion) sale of DKNM.
DKNM is a wholly owned subsidiary of KNM Process Systems Sdn Bhd, itself a wholly owned direct subsidiary of KNM Group.
The move comes just days after Bursa Malaysia rejected KNM’s regularisation plan, citing the company’s inability to demonstrate sustainable earnings and an effective turnaround strategy. The exchange highlighted that KNM's Malaysian operations — which would remain post-disposal — have been unprofitable since 2024 and are expected to generate only RM4.21 million in revenue for the entirety of 2025, a mere 1.5% of its restructured capital base.
Bursa Malaysia’s decision will see the suspension of KNM’s shares on Oct 13, with the possibility of delisting on Nov 5 unless the company appeals. The company must make its appeal by Nov 2, 2025.
The DKNM sale is seen as central to KNM’s efforts to pare down debt and refocus operations. However, the sale would also strip KNM of its largest and most valuable asset, leaving behind its Malaysian business units, which have struggled to generate meaningful returns.
MAA Group, led by KNM’s largest shareholder Datuk Tunku Yaacob Khyra, appears determined to push the deal forward. Tunku Yaacob — a member of the Negeri Sembilan royal family — currently holds a 19.375% stake in KNM through MAA Group.
KNM entered PN17 status in October 2022 after its auditors raised doubts over its going concern ability. The group has since undergone internal restructuring, fought off a takeover attempt from German billionaire Andreas Heeschen, and obtained a temporary court order in September 2025 to shield its assets from legal actions and creditor claims pending an appeal hearing in May 2026.
In a separate announcement, KNM said it had filed for court approval of its debt-restructuring plan or scheme of arrangement on Sept 26, 2025, after most creditors approved it during a meeting on Aug 11, 2025.
The court will hear the case on Oct 24, 2025. If approved, the plan becomes legally binding on all creditors, even those who disagreed. If rejected, KNM could face asset sales or liquidation, adding to its troubles.
KNM’s share price closed unchanged at half a sen a share earlier, valuing the group at RM20.23 million. Year-to-date the stock is down 92.86%.