KNM’s shares up over 7% on proposed asset disposals

KNM’s shares up over 7% on proposed asset disposals
-A +A

KUALA LUMPUR (Dec 23): KNM Group Bhd rose as much as 7.14% or one sen to a high of 15 sen on Thursday morning after it announced corporate exercises to raise new funds to enhance its financial position and accelerate future growth.

At 11.43am, the counter pared some gains to 14.5 sen, still up half a sen or 3.57%, with 4.02 million shares transacted so far. Year-to-date, the stock has fallen 32%.

On Wednesday, KNM announced the proposal of a slew of corporate exercises to improve its financial position, including disposing of its Thai and UK plants as well as listing Germany-based Borsig Group, which it had identified as the most suitable measure to enhance its financial position and accelerate future growth.

According to KNM, the financial needs of the group had arisen, in the first instance, due to the prolonged consequences of the Covid-19 pandemic which had affected the group and its traditional market far beyond initial assumptions in early 2020 and which subsequently played a domino effect on several businesses, investments and operations at group level.

This comes as the process equipment manufacturer and total solutions provider is seeking to resolve its recent default on its 2.78 billion baht (RM346.76 million) Thai bonds, and “unlock the sum-of-the-parts value of KNM Group for its shareholders”.

Read also: 
KNM proposes asset disposals, listing of German unit to boost financial position

Joyce Goh