KUALA LUMPUR: KNM Group Bhd's subsidiary KNM Europa BV has signed a conditional sale and purchase agreement (SPA) that will see it exit FBM Hudson Italiana SpA at a loss of RM94.34 million.
At a signing ceremony today, KNM Europa agreed to sell FBM Hudson for €16.5 million (RM76 million) to BM Carpenterie, Oil and Gas Srl (BMC), and Officine Piccoli SpA (Officine).
BMC will acquire a 60 per cent interest in FBM Hudson while Officine will take the remaining 40 per cent.
The purchasers will be acquiring FBM Hudson and its subsidiary FBM-KNM FZCO, which is based in UAE.
Once completed, KNM is expected to book a loss of RM94.34 million from the sale. It is expected to be completed in June 2024.
As a result of this disposal, KNM Group said the purchasers assume all debts and liabilities of FBM Hudson and ensure a positive equity and cash position for these two entities to thrive and grow into the future.
KNM Bhd chairman Datuk Yaacob Khyra said this strategic decision reflects the group's commitment to optimising its portfolio and focusing on core profitable businesses as part of its ongoing efforts to strengthen the group and drive sustainable growth.
Meanwhile, KNM Group chief executive officer Ravindrasingham Balasingham thanked all those involved in assisting over the months and weeks leading to this point of signing off the SPA.
"The disposal is typically subject to condition precedents, most notably the Golden Power approval by the Italian government," he said in a statement.
Established in 1941, FBM Hudson is principally engaged in the design and manufacture of heat exchangers and high-pressure equipment for oil and gas, chemical, petrochemical, oil refining, power and fertiliser.
KNM's share price closed 6.25 per cent higher to 8.5 sen a share today.
