The High Court has dismissed Bursa Malaysia Securities Bhd’s case against MAA Group Berhad over alleged breaches of listing rules in relation to the shareholder approval process for the sale of KNM Group Bhd’s German assets.
In its ruling, the court held that MAA should not automatically be treated as a listed issuer subject to full listing obligations simply because it convened an extraordinary general meeting (EGM) for KNM shareholders under the Companies Act 2016.
The court also found that any procedural irregularity, if present, could be rectified and there was insufficient evidence of substantial injustice. Written grounds for the decision will be issued later.
The case, heard on May 14, 2026, was linked to an EGM initiated by MAA as KNM’s largest shareholder to approve the proposed disposal of Deutsche KNM GmbH, despite objections from Bursa. Other defendants included KNM Group Bhd, CIMSEC Nominees (Tempatan) Sdn Bhd, and KNM Process Systems Sdn Bhd.
Bursa had sought to halt the EGM until full compliance with the Main Market Listing Requirements was met. The suit was filed on Oct 28, 2025, ahead of the originally scheduled Oct 30, 2025 meeting.
MAA, led by Tunku Datuk Yaacob Khyra, holds a 19.37% stake in KNM.
MAA said the High Court dismissed the case with no order as to costs, while Bursa may still appeal the decision within 30 days.
The ruling comes amid KNM Group Bhd’s broader legal and restructuring challenges following the collapse of its €270 million deal to sell its German unit, Deutsche KNM GmbH, to Japan’s NGK Insulators.
KNM is seeking damages including RM363 million for loss of market value after delisting, €46.5 million in German bank exposures, and RM42.69 million in costs.
KNM, which was classified as a Practice Note 17 (PN17) company, had been trying to complete the disposal of its German assets, Borsig, which it acquired in 2008 for €350 million.
The sale was part of its plan to reduce debt and exit PN17 status, with expected debt reduction of about RM1.3 billion and working capital gains of around RM100 million.
However, Bursa rejected KNM’s restructuring plan in October 2025, saying it failed to demonstrate long-term viability and did not adequately address its financial issues.
KNM later withdrew its appeal and proceeded with delisting in November 2025 after Bursa warned against holding the vote without complying with listing rules. The EGM was eventually adjourned to a date after delisting took effect.
