KNM Group Aspirants Stand a Better Chance to Turnaround European Units

The prospective new management/board of KNM Group Bhd, led by spokesman Andreas Heeschen, has outlined its vision for the company should they succeed in unseating the current leadership at the upcoming extraordinary general meeting (EGM). Contrary to popular belief, their goal is not to acquire Borsig GmbH on the cheap but to nurture the oil & gas (O&G) engineering company to its full potential.

Their primary objective, if they gain control, is to prioritize debt repayment for KNM Group through various means, including bridging loans, special bond issuances, inter-government financing, and corporate exercises. They emphasize continuity in decision-making until superior solutions arise.

“Until after the EGM, we wish to send all creditors and stakeholders a reassuring message of continuity, meaning that the new leadership will not disrupt or delay the currently already taken decisions until a better solution (under the timeframe and the financial standpoint of view) shows up in the starting blocks,” says spokesperson Andreas Heeschen.

The aspirant management/board has denied any hostile takeover intentions, stating that their aim is to inject financial support into the company. They plan to establish a clear strategy, focusing on debt settlement, exiting the PN17 status, enhancing key assets, revitalizing those in need of capital expenditure (CAPEX), and ensuring long-term growth.

They assert that Borsig, under the right leadership, holds significant potential for new businesses and possible acquisitions.

Turnaround of European Assets

“Obviously, the final goal is to reflect the true value in the share price of KNM Group. In this regard, Borsig has a far greater potential under the right leadership via new businesses and possibly new acquisition,” says director-aspirant Flavio Porro who was previously KNM Group’s former executive director.

Regarding the handling of assets, the new management/board criticizes the current approach, particularly the decision to liquidate FBM Hudson Italiana SpA for €22 million. They argue that the assets are worth more, and this move has damaged creditors and created legal complications.

In their global rehabilitation plan, they aim to restart production in Thai assets, potentially increasing it to 500,000 liters/day, and explore options for the ill-fated Peterborough Green Energy Ltd project in the UK. They also intend to revitalize Malaysian factories, focusing on branding, technology, manpower, and optimization.

Should the new leadership succeed, they aspire to unlock KNM Group’s true value, benefitting shareholders, creditors, and stakeholders alike. As of now, KNM Group’s share price stands at 17 sen, with a market value of RM688 million.