KUALA LUMPUR (Oct 23): Bursa Malaysia Securities has warned MAA Group Bhd (KL:MAA), KNM Group Bhd’s (KL:KNM) major shareholder, not to hold a vote on selling KNM’s stake in German unit Deutsche KNM GmbH (DKNM) without following listing rules.
In a rare advisory on Thursday, Bursa said MAA is bound by the same Main Market listing rules as KNM’s directors and failing to comply with the rules would be considered a breach.
Bursa said it considers the DKNM disposal as a major disposal, which requires the appointment of advisers, getting a valuation of DKNM, if needed, and sending a detailed circular to shareholders for Bursa’s review.
It added that shareholder approval for the disposal must come from at least 75% of the total number of issued shares held by shareholders present and voting at the meeting.
“Failure to comply with the same may constitute a breach of Section 313 of the Companies Act 2016, the Main [Market] listing rules, the Capital Markets and Services Act 2007 and the undertakings issued by the directors of KNM to Bursa Malaysia Securities that at all times they will comply with the Main [Market] listing rules,” it said.
Bursa said that as of the date of its advisory, it has yet to receive any circular or related documents from MAA or its advisers.
“Bursa Securities will continue to monitor developments and will not hesitate to take appropriate action in the event of any breach of the Main [Market] listing rules,” the exchange said.
KNM’s restructuring plan, which included selling its German unit DKNM, was rejected by Bursa on Oct 3, 2025. The company appealed on Oct 7 to proceed with the sale and a share capital reduction as part of efforts to exit Practice Note 17 (PN17) status, but Bursa has yet to decide.
The warning by Bursa complicates MAA’s attempt to complete the deal to sell DKNM to Japan’s NGK Insulators for €270 million (RM1.34 billion) before the Oct 30 deadline agreed with creditors. Missing the deadline, MAA had said, could see creditors appoint a liquidator to sell DKNM and other assets.
MAA is pushing ahead despite KNM rejecting its extraordinary general meeting request, citing strict PN17 compliance rules. The financially troubled group is relying on the DKNM sale — which owns its key asset, Borsig GmbH — to cut about RM1 billion in debt and free up RM100 million in working capital.
KNM’s shares have been suspended since Oct 13 after Bursa rejected its regularisation plan, saying the company failed to show it could sustain its business.
Tunku Datuk Yaacob Khyra-led MAA holds a 19.37% interest in KNM. At its Oct 12 close of half a sen, KNM was valued at RM20.23 million.
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