KUALA LUMPUR, Bursa Malaysia Securities Bhd has initiated legal proceedings against MAA Group Bhd (KL) to prevent it from convening an extraordinary general meeting (EGM) regarding the proposed sale of Deutsche KNM GmbH (DKNM), a subsidiary of KNM Group Bhd (KL).
In a filing on Tuesday, KNM said Bursa had filed an originating summons at the Kuala Lumpur High Court against MAA, CIMSEC Nominees (Tempatan) Sdn Bhd, KNM, and its wholly-owned unit, KNM Process Systems Sdn Bhd. MAA was named the first defendant, while CIMSEC Nominees was listed as the second. The hearing is scheduled for Oct 29 — a day before the planned EGM on Oct 30, 2025.
Through the court action, Bursa is seeking an injunction to restrain MAA and CIMSEC Nominees from convening the EGM or tabling a special resolution related to the DKNM disposal until all Main Market Listing Requirements have been satisfied.
The legal move follows Bursa’s prior warning to MAA on Oct 23 that proceeding with the shareholder vote would constitute a breach of listing rules. MAA, led by Tunku Datuk Yaacob Khyra, holds a 19.37% stake in KNM.
On Monday, KNM announced its decision to withdraw an appeal against Bursa’s rejection of its Practice Note 17 (PN17) regularisation plan — a step that paves the way for its delisting on Nov 5 after 22 years on the stock exchange. KNM said the withdrawal was necessary to finalise the €270 million (RM1.34 billion) sale of DKNM to Japan’s NGK Insulators Ltd.
The group emphasised that the disposal is crucial for its turnaround, as proceeds will be used to reduce RM1.3 billion in debt and provide RM100 million in working capital to support operations. The EGM called by MAA is intended to seek shareholder approval for the transaction, despite Bursa’s objections.
DKNM owns Borsig GmbH, KNM’s core German asset, which has been identified as key to the group’s debt-reduction strategy. KNM has been classified under PN17 since October 2022 after auditors raised going-concern issues.
KNM’s shares have been suspended since Oct 13, following Bursa’s rejection of its restructuring plan. They last traded at 0.5 sen, giving the group a market capitalisation of RM20.23 million.
