KUALA LUMPUR, KNM Group Bhd has chosen to prioritise its financial recovery over maintaining its listing status, as it moves forward with the €270 million (RM1.34 billion) sale of its German subsidiary, Deutsche KNM GmbH (DKNM) — a transaction it deems critical to restoring stability.
In a filing on Monday, the debt-laden engineering group said it has withdrawn its appeal against Bursa Malaysia’s rejection of its Practice Note 17 (PN17) regularisation plan. The withdrawal means KNM will be delisted on Nov 5, 2025, ending its 22-year tenure on the local exchange.
Bursa had previously rejected the regularisation plan, citing the company’s inability to demonstrate long-term business sustainability. KNM explained that pursuing an appeal would have delayed regulatory processes and potentially jeopardised the completion of the DKNM sale.
The company described the delisting as a strategic move to accelerate its turnaround and complete the disposal of DKNM to Japan’s NGK Insulators Ltd — the “highest and most credible offer” received.
“KNM has endured some of its toughest years and is now on the verge of transformation. If delisting is what it takes to complete the NGK sale, eliminate debt, and restore growth, it is a necessary step forward,” said group chief executive officer Ravindrasingham Balasingham in a separate statement.
KNM added that the current market value of its shares reflects “minimal value”, rendering the delisting largely symbolic. Remaining listed under PN17, it said, restricts fundraising and negatively impacts the group’s credibility with clients and investors.
According to the company, delisting will allow it “to move faster, execute projects more effectively, and focus on restoring profitability without further delays.”
KNM’s decision follows Bursa Malaysia’s warning to its major shareholder, MAA Group Bhd, on Oct 23 that convening a shareholder meeting on the proposed sale would breach listing rules. MAA, which owns a 19.37% stake, had planned to hold an EGM on Oct 30 after KNM rejected its earlier request, citing regulatory non-compliance. MAA had also stressed that the transaction with NGK Insulators must be completed by Oct 30 to avoid liquidation.
As it moves toward delisting, KNM said it will proceed with the EGM on Oct 30 to seek shareholder approval for the sale. The disposal is expected to reduce the group’s RM1.3 billion debt burden and generate RM100 million in cash to fund operations and drive its turnaround.
“KNM currently has nearly 33,000 shareholders and about 450 creditors, all of whom stand to benefit from the completion of the DKNM disposal. The upcoming EGM is a critical milestone in ensuring KNM’s recovery and financial sustainability,” it said.
KNM added that the sale of DKNM, which holds its key asset Borsig GmbH, is essential to debt repayment and lowering gearing. Creditors have agreed to allow the group to retain RM100 million from the sale proceeds for working capital.
The group emphasised that delisting does not equate to closure, noting it will continue to operate as an unlisted public company with shareholder rights preserved under the Companies Act 2016. KNM said it will focus on financial and operational recovery using the retained funds and may consider re-listing once its position improves.
“The board is fully committed to KNM’s turnaround and believes this decisive action, though difficult, is the only responsible path to protect the company and create long-term value for stakeholders,” the statement said.
KNM was classified as a PN17 company in October 2022 after auditors flagged going-concern issues. Before its suspension, the company’s shares last traded at half a sen, valuing it at RM20.23 million.
