PETALING JAYA: Practice Note 17 (PN17) company KNM Group Bhd’s shareholders have approved the 270 million euros (RM1.3bil) sale of its subsidiary, Deutsche KNM GmbH (DKNM), to Japan’s NGK Insulators Ltd.

In a statement, the financially distressed engineering group said 93.74% of its shareholders voted in favour of the disposal at its EGM, which was held yesterday.

“The approval paves the way for KNM to move forward with the disposal of DKNM Group for 270 million euros — a transaction that will significantly strengthen the group’s balance sheet by reducing its debt obligations and providing the necessary working capital to revitalise its Malaysian operations.

“In a show of transparency, KNM’s chief executive officer, Ravindrasingham Balasingham, invited the Minority Shareholders Watch Group (MSWG) to directly engage with minority shareholders present at the meeting.”

KNM said MSWG observed the entire session and raised questions, all of which were addressed comprehensively by KNM’s board and management.

Ravindrasingham said the disposal approval marked an important step in restoring KNM’s financial health and setting the stage for sustainable growth.

“We are grateful to our shareholders for their confidence and to all stakeholders who have stood by KNM throughout this journey.”

KNM, once a market darling with global oil-and-gas engineering ambitions, slipped into PN17 status in 2022 after years of financial strain, high debt levels, and inconsistent earnings. Following the withdrawal of its appeal against delisting on Oct 27, KNM’s securities will be officially removed from the official list on Nov 5.