Kuala lumpur: Practice Note 17 (PN17) company KNM Group Bhd will be delisted from the official list of Bursa Malaysia Securities Bhd on Nov 5, following the rejection of its regularisation plan by the stock exchange.

According to BERNAMA News Agency, in a filing with Bursa Malaysia, KNM stated it has decided to withdraw its appeal against the delisting decision and has submitted a formal notification to Bursa Malaysia Securities. KNM confirmed, “Following the withdrawal of the appeal, the company will abide by the decision. Accordingly, KNM’s securities will be delisted from the official list of Bursa Securities with effect from Nov 5.”

The company emphasized that the decision was made after careful deliberation by the board, considering the best interests of all stakeholders, including shareholders, creditors, and employees. In an effort to alleviate financial burdens and streamline operations, KNM has engaged in several sale and purchase agreements (SPAs) to divest non-core or underperforming assets.

KNM further explained that the successful completion of its SPA is crucial to its financial stabilization efforts, noting that the regulatory timeframe for pursuing the appeal could affect the SPA’s completion schedule. Despite the impending delisting, the group expressed confidence in its future, citing a 35-year track record and a strong presence in the process equipment manufacturing industry. The board is optimistic that the RM100 million retained working capital will enable the company to rebuild and revitalize its operations.

The board stated that it will focus on the operational and financial turnaround of the group. At an appropriate time, when the company’s financial health is restored, the board will consider a re-listing of KNM, subject to financial performance and requisite approvals. Currently, shares of KNM last traded at half a sen.