It was the most actively traded stock on Bursa Malaysia today with 500.51 million shares changing hands. It subsequently pared some of its gains and was up 2 sen or 20% to 12 sen at the close, valuing the group at RM485.5 million.
Year-to-date, the stock of the Practice Note 17 (PN17) status company has more than doubled from 5 sen on Dec 30, 2022.
Yesterday, Heeschen signalled the start of a potential takeover through a notice of requisition for an extraordinary general meeting (EGM).
Working in concert with a group of eight other shareholders, the German businessman is seeking to remove its entire board of directors. The group collectively hold shares representing not less than 10% of the paid-up capital of KNM.
Emerging as the second largest shareholder with a 7.91% stake or 320 million shares on Sept 1, Heeschen is reported to be the majority owner of German-based firearms manufacturer Heckler & Koch.
The group of shareholders are seeking to appoint Johor princess Tunku Kamariah Aminah Maimunah lskandariah Sultan Iskandar as a director to replace KNM chairman Tunku Yaacob Khyra.
A member of the Negeri Sembilan royal family, Tunku Yaacob is the single largest shareholder with a 9.44% indirect stake or 347.2 million shares held via Melewar Industrial Group Bhd.
The group also proposed to appoint another six new directors, including Heeschen and Flavio Porro, a former executive director of KNM.
The company fell under the PN17 classification on Oct 31, 2022. In December 2022, KNM said it had defaulted on loans amounting to RM416.8 million, borrowed through three of its indirect wholly-owned units following the failed sale of Borsig GmbH for €220.8 million (RM1.1 billion).
Its original plan was to reduce its debt by selling its prized asset, machinery and equipment company Borsig GmbH in Germany which was acquired in 2008 for RM1.75 billion (€350 million).
However, KNM was unsuccessful in finalising the sale, which lead to it mulling the possibility of listing Borsig as an alternative option.
KNM has until the end of October 2023 to submit its PN17 regularisation plan to the authorities. As of June, its borrowings totalled RM1.18 billion, a decrease from RM1.26 billion a year ago.
For the financial period ended June 30 (FY2023), the group reported a net loss of RM157 million while revenue came in at RM1.07 billion.
KNM is obliged to call for the EGM within 14 days from the date of the requisition and hold it not more than 28 days after the date of the notice to convene the EGM.
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