In a statement, KNM said it received a request on Oct 7 from MAA Group for an EGM to discuss the proposed disposal of Deutsche KNM GmbH (DKNM) to Japan’s NGK Insulators Ltd.

“After careful deliberation, the board of KNM concluded that in light of the listing requirements applicable to PN17 companies, it would not be possible to convene such a meeting within the timeline specified in the notice, without breaching regulatory procedures.”

The oil and gas services provider had fallen under the PN17 classification in October 2022.

KNM said that if it waited for Bursa Malaysia’s decision on the pending appeal on its delisting and interim proposal before calling the EGM, it would not be feasible to issue the necessary 21-day notice to shareholders within the prescribed time frame under Section 312 of the Companies Act.

“Accordingly, the board decided that it will not proceed with the convening of the meeting at this stage to ensure full compliance with the listing requirements and to avoid jeopardising our listing status while the appeal remains under consideration.”

The company said following its refusal to hold the EGM, MAA Group had called for an EGM of KNM’s shareholders on Oct 30 to discuss the proposed sale.

It also said the High Court yesterday ordered the disposal of DKNM as required under the Scheme of Arrangement.

KNM said the disposal would “immediately pare down” the RM1.3 billion debt and allow the group to revitalise its business.