KNM’s last gamble 

KNM Group Bhd’s largest shareholder, MAA Group Bhd, is not backing down.

Days after Bursa Malaysia rejected KNM’s plan to exit its Practice Note 17 (PN17) status, MAA – led by Tunku Datuk Yaacob Khyra – has called for an EGM to let shareholders vote on the sale of Deutsche KNM GmbH (DKNM) for €270mil (RM1.34bil).

On paper, the logic is clear: monetise KNM’s most valuable asset, pay down debt, and buy more time for the group to survive.

But the timing is precarious.

Bursa’s rejection wasn’t about the sale itself; it was about what would remain afterward.

The exchange concluded that selling DKNM would leave KNM with only its Malaysian operations, which have been unprofitable since 2024 and are expected to generate just RM4.21mil in revenue for 2025 – barely 1.5% of its restructured capital base.

That’s why the sale, while lucrative, doesn’t solve the real problem.

Without DKNM, KNM loses its only meaningful source of earnings and credibility in international markets.

The Malaysian units, stripped of the German engine, would struggle to demonstrate any sustainable growth.

Tunku Yaacob’s move to push for the sale anyway is a bold play.

It signals a belief that clearing debts and resetting the balance sheet might still convince regulators or creditors that KNM deserves a second chance.

However, the group’s valuation – now a mere RM20mil – tells the story of how far confidence has fallen.

KNM’s shares were initially set to be suspended on Oct 13, with delisting likely by Nov 5.

However, it submitted an appeal against the de-listing decision to Bursa on Oct 7, and the de-listing will be deferred pending the appeal’s outcome.

Meanwhile, even if the EGM approves the sale, KNM’s chances of exiting PN17 remain slim without a credible turnaround for its Malaysian operations.

The upcoming court hearing on Oct 24 for its debt restructuring scheme could be a lifeline, but KNM must prove that post-sale it can actually generate profits, not just survive on asset disposals.

MAA’s push is, at its core, a last throw of the dice.

It could unlock cash and buy precious time, or it could leave KNM debt-free but directionless – an empty shell of what was once a global engineering name.

Either way, the next few weeks will determine whether this is a revival in the making.