KUALA LUMPUR (Oct 29): Faced with court action, KNM Group Bhd (KL:KNM) said it plans to seek shareholders’ approval to adjourn a meeting to vote on selling its German unit, Deutsche KNM GmbH (DKNM), for €270 million (RM1.34 billion) to Nov 6, 2025 — a day after its scheduled delisting.
KNM, in a filing with the bourse, said the High Court hearing on Bursa Malaysia Securities’ legal action did not stop the extraordinary general meeting (EGM) set for Oct 30, 2025. However, the EGM chairman will propose adjourning the meeting, with shareholders deciding on the motion at the meeting.
KNM is chaired by Tunku Datuk Yaacob Khyra, who also controls its major shareholder, MAA Group Bhd (KL:MAA).
According to Bursa in a separate statement, the High Court gave KNM and MAA until Nov 19, 2025 to respond to the affidavit by Bursa.
On Tuesday, Bursa filed a court case against MAA, CIMSEC Nominees (Tempatan) Sdn Bhd, KNM and its unit KNM Process Systems Sdn Bhd to:
- Stop them from breaking listing rules and prevent the DKNM sale resolution from being discussed or voted on at an EGM planned on Oct 30.
- Declare any resolution passed without following the listing rules as invalid.
- Instruct the EGM chairman to adjourn the meeting if the court has not ruled.
MAA was named as the first defendant while CIMSEC Nominees is the second defendant. Faced with KNM's refusal to call for the EGM to adhere to Bursa's listing rules, MAA had called for the EGM on Oct 30.
Bursa says legal action to protect market integrity
Bursa said its court action against KNM and MAA is meant to protect market integrity, even as KNM faces delisting on Nov 5, 2025, following the regulator’s rejection of its unsustainable regularisation plan.
The regulator said the disposal is a major transaction requiring advisers, independent valuation, and a detailed shareholder circular for review by Bursa, before an EGM can be called to deliberate on the disposal.
“Bursa Securities remains committed to ensuring transparency, fairness and investor protection in all its regulatory actions. The integrity of the capital market is paramount, and Bursa Securities will continue to take all necessary steps to uphold public confidence and maintain orderly market operations,” the regulator said.
Bursa’s legal action follows its Oct 23 warning to MAA to not hold a vote on the proposed sale of DKNM without adhering to listing rules.
The warning had led KNM to withdraw its appeal against Bursa’s decision to reject its regularisation plan, paving the way for its delisting.
KNM shares have been suspended since Oct 13, with the stock having traded at 0.5 sen prior to its suspension, valuing the company at RM20.23 million.
The Practice Note 17 company’s Malaysian operations have been loss-making, with the group saying that the sale of DKNM is seen as crucial to repay RM1.3 billion in debt and secure RM100 million in working capital.