KUALA LUMPUR, Sept 8 — KNM Group Bhd’s (KNM) sub-subsidiary KNM Europa BV plans to dispose of its 100 per cent equity interest in FBM Hudson Italiana SpA (FBMHI) to Dubai-based Petro MAT FZCO for €22 million (RM110 million).
FBMHI, which makes heat exchangers and high-pressure equipment, operates a manufacturing facility in Jebel Ali Free Zone in Dubai through a wholly-owned subsidiary.
KNM, a Practice Note 17 company, said it has decided to exit the loss-making segment in view of the continued loss-making operations of KNM Europa BV and uncertainty in business prospects.
“The expected proceeds to be received from the proposed disposal of FBMHI, albeit in tranches, can be reallocated to other viable businesses and for the working requirements within the group,” it said in a filing with Bursa Malaysia today.
KNM also said the expected loss arising from the proposed disposal is about RM95 million.
The proposed disposal is subject to the approval of the company’s shareholders at an extraordinary general meeting to be convened.
“Subject to all relevant approvals being obtained and the fulfilment of all the conditions set out in the conditional sale and purchase agreement, the board expects the proposed disposal to be completed on Oct 31, 2023, or at such other date as the seller and purchaser mutually agreed on,” KNM said. — Bernama