WHILE it is true that the Police have sought the assistance of KNM Group Bhd in an investigation, there was never a police raid as claimed in an initial online media report which regretfully was also picked up by various other online media outlets.
In fact, Bukit Aman has rubbished these claims and this was confirmed by its Commercial Crime Investigation Department (CCID) director Datuk Seri Ramli Mohamed Yoosuf as reported in the media.
At this moment, we cannot get into the specifics of the probe as it is a subject for the police; however, as a reputable and responsible organisation, the board of KNM under the leadership of Tunku Datuk Yaacob Khyra will assist the police in the said inquiry.
Moving forward, KNM wishes to take this opportunity to inform the public that:
- The company will continue in its efforts to monetise its assets earmarked for the paring down of the company’s debts. We have an ambitious timeline despite disruptions from the hostile takeover extraordinary general meeting (EGM) (on Oct 16) which had delayed and reversed earlier efforts up to that point. To overcome these delays, we are moving with even greater urgency.
- The pre-IPO (initial public offering) efforts for Borsig have had greater traction and we are in the midst of negotiating prices with potential subscribers for the subscription of the shares. Once we have an agreement, we will make the necessary announcements and seek shareholders’ approval.
- FBM Hudson Group disposal had been badly impacted by the Golden Power rejection by the Italian government but we understand the reasons for the Italian government’s action. However, the more acute liquidity situation within FBM Hudson Group at present means there are mainly one euro offers from potential buyers.
The KNM management is working hard to salvage an offer that is somewhat better than one euro for FBM Hudson Group.
- The other asset monetisation efforts are also on-going. The state of the assets like the cassava-to-ethanol plant in Thailand and waste-to-energy project in the UK is proving to be a challenge.
The current state of the world economy and the high interest rates do not help the monetisation efforts. Nevertheless, the management remains positive and continues to push ahead with its efforts.
- Our major creditors continue to support the management. We are mindful that the creditors have been very supportive all through our efforts, including during the hostile takeover attempt and we shall do all in our power to deliver for all stakeholders.
- We are working with our investment bankers on a regularisation plan and will submit it to Bursa Malaysia as soon as it is in a state that the market regulator will be able to process it. It is important we have the monetisation plans at an advanced stage at the point of submission and with reasonable certainty for Bursa Malaysia to be able to assess it properly.
- Borsig continues to grow from strength to strength with the green energy investment stimulus in Germany and across Europe to replace fossil fuel as a source of energy while its traditional processing equipment sales continue to grow, too.
Following the above restructuring efforts of KNM where loss making operations like FBM Group and the Thai asset will be disposed, KNM will revert to a sustainable profitable future on the back of Borsig Group.
This will be achieved in two ways – one from the profitability of Borsig Group itself and the other is by KNM Process System Bhd being incorporated into the Borsig manufacturing operations.
Post listing, Borsig Group intends to have a dividend policy with a 75% of profits distributed annually. – Dec 15, 2023
Ravindrasingham Balasingham is KNM Group Bhd’s executive director and group CEO.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
