KNM's sub-subsidiary to dispose of entire stake in FBM Hudson Italiana for RM84.77mil

KUALA LUMPUR: KNM Group Bhd’s wholly-owned indirect subsidiary KNM Europa BV planned to dispose of its entire stake in FBM Hudson Italiana SpA (FBMHI) for 16.5 million euros (RM84.77 million).

In a filing with Bursa Malaysia today, KNM said KNM Europa has entered into a conditional share purchase agreement with BM Carpenterie Oil and Gas SrL to dispose of its 60 per cent share capital in FBMHI for 9.90 million euros, while its 40 per cent share capital of FBMHI will be sold to Officine Piccoli SpA for 6.6 million euros.

"In view of the continued loss making operations of KNM Europa and uncertainty in business prospect, KNM has decided to exit this loss-making segment and the expected proceeds to be received from the proposed disposal of FBMHI, albeit in tranches, to be withheld to repay borrowings and for working capital purposes,” said the group.

KNM said the proposed disposal of its entire equity in FBMHI represents an opportunity for the group to unlock and realise the value of the investments made in FBMHI at a satisfactory price based on the financial position of the company.

The proposed disposal is expected to result in an estimated loss of approximately RM94.34 million to KNM.

"Barring any unforeseen circumstances and subject to all required approvals being obtained, the proposed disposal is expected to be completed by June 30, 2024,” it added. - Bernama