Kuala lumpur: KNM Group Bhd’s wholly-owned subsidiary, KNM Europa BV, has announced plans to dispose of its entire equity interest in FBM Hudson Italian SPA (FBMHI) to SymbEx GmbH and Terragarda GmbH for EUR19.50 million (EUR1=RM4.89).

According to BERNAMA News Agency, the group revealed in a filing with Bursa Malaysia that its board has assessed the overall financial condition of FBMHI. Despite FBMHI’s return to profitability in the fourth quarter of 2024 and the first quarter of 2025, the company requires a significant and immediate capital injection. This capital is necessary for comprehensive debt restructuring, enhancing working capital to support its substantial tender pipeline, and funding future growth initiatives. The board acknowledged that these financial resources are currently unavailable at the KNM Group level due to its own ongoing restructuring efforts.

Consequently, KNM stated that the proposed disposal of FBMHI is seen as a critical and strategic move. It aims to unlock value for KNM’s shareholders and ensure the long-term operational and financial sustainability of FBMHI under new ownership with robust financial capacity and a clear strategic direction.

The proposed disposal is designed as a comprehensive acquisition and recapitalization plan, reflecting a total enterprise value of EUR8.00 million. The cash consideration of EUR8.00 million and the assumption of FBMHI intercompany debt of EUR11.50 million together make up the total disposal consideration of EUR19.50 million.

In response to the offer, KNM Europa has granted SymbEx and Terragarda a 60-day exclusive negotiation period. This exclusivity is intended to allow the purchasers to conduct a thorough due diligence exercise and facilitate the negotiation of a definitive sale and purchase agreement.