Borsig sale to provide lifeline for KNM

AFTER much deliberation by KNM Group Bhd about how it would seek to get back on track, especially in fixing its mounting debt, a decision has been made to flog off its prized asset.

The company is proposing to sell its wholly owned unit, Germany-based Borsig Group for €220.8mil (RM1.03bil).

The sale will require the vote from its shareholders at a soon-to-be convened EGM. The proposed sale seems to come in time for the group to resolve the issue of its high indebtedness.

Its circular to Bursa Malaysia says that 91% of the sales proceeds from Borsig or €188.87mil (RM874.23mil) will be channelled towards the repayment of KNM’s bank borrowings, which were used for project financing, capital investment and working capital.

Another €15.55mil (RM71.98mil) will be used for working capital and…