KUALA LUMPUR, 29 October 2025 – KNM Group Berhad has confirmed it will proceed with its delisting from the Bursa Malaysia on 5 November 2025, after withdrawing its appeal against the rejection of its PN17 regularisation plan. The move clears the way for the disposal of its German subsidiary, Deutsche KNM GmbH (“DKNM”), in a transaction valued at approximately €270 million (RM1.34 billion), a key step in the company’s turnaround strategy.
Delisting and Asset Sale Rationale
The board of KNM said that remaining listed under the PN17 status would hinder fundraising capabilities, prolong regulatory uncertainty and impede the company’s ability to execute the DKNM sale. By withdrawing the appeal and accepting delisting, KNM can accelerate its turnaround.
The DKNM disposal, to Japan’s NGK Insulators Ltd., is described as “critical” to reducing the group’s debt, restoring operational viability and focusing on its core asset-services business.
Strategic Impact and Investor Considerations
For Malaysian and Asian investors, this development offers several implications:
- The delisting signals a transition from being a listed public company to a privately-held structure, raising questions about transparency, shareholder rights and liquidity.
- Completing the DKNM sale will strengthen KNM’s balance sheet by reducing debt, unlocking cash and reshaping the company’s operational focus.
- The move may herald a broader re-alignment of the company’s strategic asset base, with more selective growth initiatives rather than broad listed-company obligations.
What to Watch Next
Key upcoming items include:
- Final shareholder approval at the Extraordinary General Meeting (EGM) scheduled for 30 October, expected to green-light the DKNM disposal.
- Execution of the delisting process on 5 November and how the company will communicate its future strategy post-listing.
- Use of sale proceeds: how much will go towards debt reduction, working capital and potential reinvestment, critical for assessing the turnaround’s credibility.
- Implications for other PN17-companies and industrial firms in Malaysia: this case may set precedent for delisting as an alternative to burdensome regulatory regularisation.
Conclusion
KNM’s decision to delist in order to accelerate a major asset sale reflects the difficult trade-offs faced by distressed companies in Malaysia’s listed-corporate landscape. For Asian investors, the key takeaway is not just the disposal value, but the strategic clarity: can KNM rebuild its business in a simpler, non-listed form, and deliver value from that reset?
