KUCHING: Datuk Sri Mahmud Abu Bekir Taib has ceased to be a substantial shareholder of KNM Group Bhd after disposing of 1.1 million shares in the company last week.
The son of Sarawak Yang di-Pertua Negeri Tun Abdul Taib Mahmud sold one million shares on Oct 30 and 100,000 shares on Oct 27 in the open market, according to KNM’s filing with Bursa Malaysia. There was no disclosure at what price he sold the shares.
On both dates, KNM shares were traded between 10.5sen and 11sen. Abu Bekir, who is also Cahya Mata Sarawak Bhd (CMS) deputy group chairman, emerged as a substantial shareholder in KNM, an oil and gas engineering outfit and a PN17 company, when he acquired 203.475 million shares or 5.031 per cent in the open market on Oct 6, 2023. On same day, KNM share price moved between 16sen and 18sen.
In a separate filing, KNM said the Asian Development Bank (CGIF), TransAsia Private Capital Limited and Danos Limited (TA/Danos) and majority of the lenders including Bank of China (BOC) are still working in close cooperation with its board of directors and group CEO Ravi Balasingham towards achieving a mutually acceptable resolution of the settlement of the monies due to the respective lenders from the monetisation of non-core assets and initial public offer (IPO)/sale of Borsig GmbH.
“The company has maintained its stated plan to monetise the assets which will be accelerated under a disposal process based on non-exclusive deal structure, which will also naturally lead to higher cash values on disposal,” it added.
To recap, on Nov 18, 2022, KNM announced that a non-payment event had occurred in relation to the payment of the principal sum and coupon on the bonds the company issued in Thailand amounting to RM352.57 million.
The Thai bonds, which are guaranteed by Credit Guarantee and Investment Facility, a trust fund managed by CGIF, had matured on Nov 18, 2021 and under the terms and conditions, KNM has up to 14 days after the maturity date (Dec 2, 2021), to pay the principal sum and up to 21 days after the maturity date (Dec 9, 2021) to pay the coupon arising therefrom, failing with, an event of default shall be deemed to have occurred. KNM had failed to make payments for both.
KNM said it has been in continuous close discussion with the respective lenders on various measures to address the events of default.
“The repayments will be dealt with, addressed and/or restructured under the proposed scheme or arrangement as announced on 16 December 2022,” it added.
On Dec 15, 2022, the Kuala Lumpur High Court allowed KNM and KNM Process Systems Sdn Bhd’s application to call for a court convened meeting(s) pursuant to Section 366(1) of the Companies Act, 2016 with the creditors of the applicants or any class of them (scheme creditors) for the purpose of considering and, if thought fit, approving with or without modification the proposed scheme of arrangement and compromise between them, In another related development, KNM said the company had on Oct 30, 2023 applied to Bursa Malaysia Securites Bhd (MMLR) for extension of time to comply with Paragraph 8.04(3) and PN17 of the MMLR.
“The application is being considered by Bursa Securities, and an announcement in relation to the outcome will be released in due course,” it added.
In an unrelated corporate development, a substantial shareholder of Malaysian Genomics Resource Centre Bhd Datin Sri Jacqueline Ngu Hia Kee has disposed of 201,200 company shares on Oct 30, 2023.
With the disposal, the former beauty queen has reduced her shareholdings to 4.98 per cent and, therefore, ceased to be a substantial shareholder. Ngu acquired seven million shares in the company via a private placement on July 24, 2023, increasing her stake to 7.04 million shares (5.131 per cent).
Meanwhile, OM Holdings Limited said its wholly-owned subsidiary OM Materials (S) Pte Ltd (OMS) has executed a share sale agreement for the sale of its 90 per cent equity interest in OM Materials (Qinzhou) Co Ltd (OMQ) to Beijing Kunpeng Hongsheng Metal Co Ltd for about US$25 million.
The buyer is an established company involved in the trading or ores and alloys in China. OMH said OMS will retain a 10 per cent interest in OMQ.
“The proceeds from this sale will be used partly for working capital needs and the capital expenditure of the OMH group. It is expected that the share transfer will be completed by 30 November 2023.
“The board (of directors) believes the sale of OMQ’s equity interest will unlock value for the company and allow the redeployment of capital to OMH’s core business operations. The company will retain a strategic relationship with the new entity and continue to provide marketing and procurement services,” it added. OMH owns OM Materials (Sarawak) Sdn Bhd, which operates a ferroalloy smelting plant in Samalaju Industrial Park in Bintulu.
