KUALA LUMPUR (Oct 28): Bursa Malaysia Securities Bhd is taking legal action against MAA Group Bhd (KL:MAA) to stop it from holding an extraordinary general meeting (EGM) on the proposed sale of Deutsche KNM GmbH (DKNM).
According to KNM Group Bhd’s (KL:KNM) bourse filing on Tuesday, Bursa had filed an originating summons at the Kuala Lumpur High Court against MAA, CIMSEC Nominees (Tempatan) Sdn Bhd, KNM and its unit, KNM Process Systems Sdn Bhd. MAA is named as the first defendant while CIMSEC Nominees is the second defendant. The case will be heard on Oct 29, a day before the EGM is to be held on Oct 30, 2025.
Bursa is seeking, among others, an order to prevent MAA and CIMSEC Nominees from convening the EGM to discuss or move the proposed special resolution on the disposal of DKNM until the requirements of the Main Market Listing Requirements have been met.
The legal action comes after Bursa warned major shareholder MAA on Oct 23 that holding a shareholder vote on the sale would breach listing rules. Tunku Datuk Yaacob Khyra-led MAA holds a 19.37% interest in KNM.
KNM announced on Monday that it will withdraw its appeal against Bursa’s rejection of its Practice Note 17 (PN17) plan, clearing the way for its delisting on Nov 5 after 22 years.
The move is needed to complete the €270 million (RM1.34 billion) sale of DKNM to Japan’s NGK Insulators. Following the withdrawal, KNM said the EGM called by MAA to approve the sale will go ahead, which is expected to reduce its RM1.3 billion debt and provide RM100 million to support operations.
The group emphasised that the sale of DKNM, which owns its key German asset Borsig GmbH, is vital to its turnaround and debt settlement.
KNM has remained under PN17 status since October 2022 after its auditors raised going-concern issues.
Its shares have been suspended since Oct 13 after Bursa rejected its regularisation plan. It last traded at 0.5 sen, valuing the company at RM20.23 million.
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