Khatron Ke Khiladi 13
Oil and gas services provider KNM Group Bhd has unveiled its intention to sell its indirect wholly owned subsidiary, FBM Hudson Italiana SpA, to Dubai-based Petro MAT FZCO for a cash sum of €22 million (RM110 million). This decision comes as a surprise move following KNM’s earlier announcement to dispose of the unit to British Midland FZE for €12 million (RM60 million).
Heading: Negotiating a Higher Price
The increased sale price of €22 million was the result of further negotiations conducted on a “willing-buyer willing-seller basis.” KNM’s sub-subsidiary, KNM Europa BV, holds a 100% equity stake in FBM Hudson, a company specializing in the manufacturing of heat exchangers and high-pressure equipment, operating from the Jebel Ali Free Zone in Dubai, United Arab Emirates.
Heading: Exiting a Loss-Making Segment
This strategic move to divest from FBM Hudson reflects KNM’s decision to exit a loss-making segment. The decision was influenced by the sustained losses incurred by KNM Europa BV and uncertainties in business prospects.
Heading: Reallocation of Proceeds
The anticipated proceeds from the proposed sale, which will be received in installments, will be redirected to support other viable businesses within the group and address working capital requirements.
Heading: Expected Loss and Shareholder Approval
KNM anticipates an expected loss of approximately RM95 million arising from the proposed disposal. The completion of the sale is subject to approval from the company’s shareholders during an extraordinary general meeting.
Heading: Completion Date and Advisory Role
The board expects the proposed disposal to conclude on October 31, 2023, or at a date mutually agreed upon by the seller and purchaser. For this transaction, KNM has enlisted the services of M&A Securities Sdn Bhd as its adviser.
