KNM gets two offers for FBM Hudson for a total of 16.5mil euros

KUALA LUMPUR: KNM Group Bhd has received two "binding and irrevocable offers” for the proposed disposal of KNM Europa BV's entire stake in FBM Hudson Italiana SpA (FBM Hudson) for a total "indicative consideration” of up to 16.5 million euros (one euro = RM5.14).

KNM Europa is a wholly owned subsidiary of KNM Process Systems Sdn Bhd, which in turn is a wholly owned subsidiary of KNM Group.

In a filing with Bursa Malaysia, the group said the first offer is by Milan-based BM Carpenterie Oil & Gas S.R.L for the acquisition of a 60 per cent equity stake in FBM Hudson at an indicative consideration of up to 9.9 million euros.

In addition, Verona-based Officine Piccoli S.p.A. has offered to acquire a 40 per cent equity stake in FBM Hudson at an indicative consideration of up to 6.6 million euros.

In November last year, it was reported that the Italian government had rejected the proposed disposal of FBM Hudson to the United Arab Emirates’ Petro Mat FZCO, therefore the deal was terminated.

FBM Hudson is primarily involved in the design and manufacture of heat exchangers and high-pressure equipment for oil and gas, oil refining, petrochemicals, chemicals, power and fertiliser businesses.

KNM said the potential purchasers may conduct due diligence on the business and operations of FBM Hudson to be completed within 15 business days from the acceptance of the offer.

KNM said it aims for the signing of the sale and purchase agreement within two months from the acceptance by KNM Europa of the offer which is currently set at no later than April 30, 2024. - Bernama