KUALA LUMPUR (Oct 8): KNM Group Bhd (KL:KNM) has secured High Court approval to sell its German subsidiary, Deutsche KNM GmbH (DKNM), to Japan’s NGK Insulators Ltd for €270 million (about RM1.28 billion). The deal is part of KNM’s debt restructuring plan under Section 368(4) of the Companies Act 2016.
The court order allows the company to proceed with the disposal of one ordinary share in DKNM, representing 100% equity interest. A separate court hearing in relation to the scheme of arrangement has been set for Oct 14.
DKNM is KNM’s most valuable asset. The sale is seen as crucial to helping the company pay off debts but it would also leave KNM with only its struggling Malaysian operations, which have been unprofitable since 2024.
In a separate filing, KNM also said it will hold an extraordinary general meeting (EGM) on Oct 30 for shareholders to vote on the sale as requested by major shareholder MAA Group Bhd (KL:MAA), which owns a 19.375% stake.
In yet another filing, KNM also updated that it has appealed Bursa Malaysia’s rejection of its Practice Note 17 regularisation plan on Oct 7. As a result, the possible delisting of its securities on November 5 has been put on hold until Bursa makes a decision on the appeal.
Bursa Malaysia had rejected KNM’s PN17 exit plan, citing weak earnings and lack of a strong recovery strategy.
Without DKNM, KNM’s Malaysian business is expected to earn only RM4.21 million in 2025 — just 1.5% of its capital base. KNM has already reduced its share capital to RM275.97 million to offset RM1.42 billion in losses and plans a 4-to-1 share consolidation.
KNM has been under PN17 status since October 2022 due to concerns over its ability to stay afloat. It has since gone through internal restructuring, resisted a takeover attempt by German billionaire Andreas Heeschen and secured a court order to protect its assets from creditors until a final hearing in May 2026.
On Wednesday, KNM’s share price closed unchanged at half a sen a share, valuing the group at RM20 million. Year-to-date the stock is down 92%.
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