KUALA LUMPUR: KNM Group Bhd’s wholly-owned subsidiary, KNM Europa BV, will dispose of its entire equity interest in FBM Hudson Italian SPA (FBMHI) to SymbEx GmbH and Terragarda GmbH for EUR19.50 million (EUR1=RM4.89).
In a filing with Bursa Malaysia today, the group said its board had taken into consideration the overall financial condition of FBMHI, which, despite a commendable return to profitability in the fourth quarter of 2024 and the first quarter of 2025, requires a significant and immediate capital injection.
"This capital is essential for comprehensive debt restructuring, augmenting working capital to support its substantial tender pipeline, and funding future growth initiatives.
"The board acknowledges that such financial resources are not presently available at the KNM Group level due to its own ongoing restructuring efforts,” it said.
As such, KNM said the proposed disposal of FBMHI is considered a critical and strategic initiative. It aims not only to unlock value for KNM's shareholders but also to ensure the long-term operational and financial sustainability of FBMHI under new ownership with strong financial capacity and a clear strategic direction.
The proposed disposal of FBMHI is structured as a comprehensive acquisition and recapitalisation plan, reflecting a total enterprise value of EUR8.00 million.
"For avoidance of doubt, the cash consideration of EUR8.00 million and FBMHI intercompany debt assumption of EUR11.50 million, collectively amounting to EUR19.50 million shall be the total disposal consideration of this proposed disposal of FBMHI,” it said.
In response to the offer, KNM Europa has granted both SymbEx and Terragarda a 60-day exclusive negotiation period.
"This exclusivity is intended to allow the purchasers to conduct a thorough due diligence exercise and facilitate the negotiation of a definitive sale and purchase agreement,” it added. - Bernama
