Kuala Lumpur, 10^th October 2023: Tunku Kamariah Aminah Maimunah Iskandariah Binti Sultan Iskandar (Tunku Kamariah) has finally broken her silence in relation to news surrounding KNM Group Berhad (KNM, stock code: 7164) and urge shareholders of KNM to vote at the extraordinary general meeting (EGM) of KNM to protect their voting rights and rescue KNM.

Tunku Kamariah’s statement comes ahead of KNM’s EGM on October 16, which was requisitioned by Andreas Heeschen (“Andreas”) to deliberate on the proposed management takeover. Andreas, a friend of Tunku Kamariah, was invited to invest in Malaysia with the hope of restructuring KNM from its financial struggle while bringing in Foreign Direct Investment (FDI) and job creation.

Referring to a paragraph in an article in the hyperlink below, she has taken notice and raise her concerns to all shareholders:

“In a virtual meeting, any incumbent board can instruct the illegal registration of shareholders who did not attend the special shareholders’ meeting, thus enabling them to cast illegal votes without any proper means of scrutiny. Such foul play could occur during a hostile takeover of a listed company.”

She recommended it is best for KNM shareholders take up their responsibility and vote at the EGM. This could avoid potential lawsuit and any undesirable outcome for KNM.

Unexpected turn of events

In an unexpected turn of events, she strongly rebutted all smearing media articles which were Pro-current board (Tunku Dato Yaacob Khyra’s Board). Her intention is to form a board of directors to steer the company out of PN17, a move aimed at safeguarding the interests of creditors, employees, customers, and shareholders.

She firmly believes that the current directors of KNM lack the necessary resources to effect a turnaround, as acknowledged by Ravindrasingham Balasingham (“Ravi”), the CEO and Managing Director of KNM in his official KNM statement on 8th September 2023, which stated that ‘.. We lack the resources necessary to fund such turnaround.’

She commented on the management, “Anyone can do asset strip by selling asset of company at distressed prices. But, that would not be in the best interest of shareholders who would be voting next Monday. Certainly, the best alternative would be to obtain bridging and inject new money for turnaround”.

Tunku Kamariah emphasized the competence of the new directors she has hand-picked, expressing confidence in their ability to navigate KNM out of PN17. She outlined a vision for the next five years, which includes injecting new capital, acquiring new assets to increase Borsig current capacity, substantial investments onto new projects, cooperating with inter-governmental bodies and securing new long term contracts.

“We have the local and European resources to assist KNM to settle debt repayment. Possibly, a migration of debt in circa 160million Euro via bridging loan & special issuance of bond. And we have the resources for capital raising of around RM400 million via appropriate corporate exercise,” she added.

She clarified that the EGM is not a competition of Germany vs Malaysia as portrayed by some reporter, who are shallow in analysing the situation. The majority of the proposed board members from her side are clearly Malaysians. Instead, it’s about a collaborative effort between Germans and Malaysians to rescue and grow KNM, create jobs, and protect the interests of all shareholders who are mostly Malaysians.

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Tunku Kamariah: Steady growth

The synergistic cooperation of the German and Malaysian is expected to deliver a steady growth of 10-15% p.a. Its expected at Borsig Group; new businesses (from new networking); unprecedented synergetic approach; new markets. All other overseas units and the Malaysian factories are also expected to be re-capitalised and expand in the next 5 years.”

Tunku Kamariah humbly advise the current board that all defamatory remarks and false statements concerning the proposed directors at the EGM should cease immediately.

“All the defaming remarks by certain website on the proposed directors at the EGM are baseless and have to stop. There is no invisible hand behind this EGM. Smearing campaign by the same website on Datuk Seri Teh Chee Teong (“DS Alex”) as a Malaysian corporate mafia was indeed childish. On the contrary, DS Alex is a friend and businessman, who has wide experience in corporate Malaysia,” she commented.

She also criticised certain parties’ recent irresponsible statements of pricing/valuation of KNM at 40 sen, asserting that it doesn’t align with the company’s Net Tangible Assets (NTA) of 21 sen as reported in the latest quarterly report of KNM. Such remarks were speculations, an attempt to influence investors.

Regarding the listing of Borsig GmbH on the SGX-ST, Tunku Kamariah expressed doubts due to certain percentage (%) of revenue derived, is from a country sanctioned by the Singapore government. Furthermore, if pursued, could potentially lead to KNM’s delisting, as more than 75% of KNM’s revenue currently is from Borsig (Chain Listing).

Tunku Kamariah also questioned the accuracy and comprehensiveness of the Explanatory Statement (“ES”) for creditors dated 26th September 2023, suggesting that it should have been prepared by an independent advisor rather than internally.

“To some extend the ES is defective. The ES documents claim that the shareholders have approved the Borsig listing on SGX. But, the only approval identified is at the board level, which is insufficient for a transaction of this magnitude. We need to ensure that proper procedures are followed.”

“The current board had their chances to fix KNM for the past 2 years. In fact, key employees have resigned from the company. If you are really transparent and willing to fight for the interest of customers, employees, creditors and shareholders, come and team up with the new proposed directors – forming a unity board or make way for us,” she challenges.

On FBM Hudson

As for the announcement of the sales of FBM Hudson recently, the documentation itself is incomplete. Details of the sales & purchase agreement were not made available to shareholders.

“I have taken notice on a whistleblower reports. I will not intervene, let authorities make their own investigation. However, parties involved should explain to shareholders,” she said.

Tunku Kamariah would like to welcome her highness favourite businessman, Dato’ Sri Mahmud Abu Bekir Taib (“DS Mahmud”) vote in the EGM and assist in getting KNM out of PN17. Yesterday, DS Madmud was announced as a substantial shareholder of KNM by virtue of his acquisition of 5.03% of KNM shares through the open market.

Tunku Kamariah’s press statement marks a significant development in the ongoing saga surrounding KNM, as she extends an olive branch to Tunku Yaacob while presenting a vision for the company’s future. The unfolding events at KNM continues to captivate the attention of shareholders, investors, and the broader business community.

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