KNM's regularisation plan rejected, faces potential delisting


PETALING JAYA: Bursa Malaysia has rejected KNM Group Bhd’s proposed regularisation plan, which may see the Practice Note 17 (PN17) company delisted from the exchange next month.

In a filing with Bursa Malaysia, KNM stated its securities will be suspended from trading on Oct 13  with a possible delisting on Nov 5, 2025.

“The securities of the company will be de-listed on Nov 5 unless an appeal against the rejection of the proposed regularisation plan and de-listing is submitted to Bursa Securities on or before Nov 2,” KNM said.

The filing did not state the reason for the rejection, but noted trading of its securities will be suspended on Oct 13 even if an appeal is filed, and will remain suspended while the appeal decision is pending.

“In the event the company submits an appeal to Bursa Securities within the appeal timeframe, the de-listing of the securities of the company from the official list of Bursa Securities on Nov 5, 2025 will be deferred pending the decision on the company’s appeal,” it added.

As part of its regularisation plan announced in August, KNM had proposed to sell Deutsche KNM GmbH, which owns its crown jewel Borsig GmbH, for €270mil (RM1.3bil), with proceeds earmarked to pare debts and restructure its balance sheet.

The plan also included cutting its share capital from RM1.7bil to RM275.97mil to erase accumulated losses, consolidating every four shares into one to reduce its share base, and implementing a debt settlement scheme that involved creditors waiving RM320mi in interest and penalties.

KNM slipped into PN17 status in October 2022 after auditors flagged concerns over its ability to continue as a going concern.

 

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