General Announcement

21/05/2004

KNM FORGING PARTNERSHIP WITH FBM-HUDSON ITALIANA SPA, A LEADING EUROPEAN PROCESS EQUPMENT MANUFACTURER FOR OIL AND GAS INDUSTRY

KNM GROUP BERHAD

Type

Announcement
SubjectKNM FORGING PARTNERSHIP WITH FBM-HUDSON ITALIANA SPA, A LEADING EUROPEAN PROCESS EQUPMENT MANUFACTURER FOR OIL AND GAS INDUSTRY

Contents :

KNMs wholly-owned subsidiary, KNM International Sdn Bhd (KNMI) has today entered into a joint venture through a Share Sale and Shareholders Agreement (JV) with FBM-Hudson Italiana SpA (FBM) for acquisition of 50% equity interest in FBMs manufacturing plant in Jebel Ali Free Zone, Dubai (FBM-KNM FZCo) for a cash consideration of Euro 10 million (RM45.64 million based on the exchange rate RM1.00: Euro 0.2191).


In addition, KNMI and FBM shall subscribe equally for a total of Euro 4 million (RM18.26 million) in shares in FBM-KNM FZCo.

As part of the agreement, FBM shall guarantee that KNMI shall receive a cash dividend of Euro 1.8 million (RM8.22 million), Euro 2.0 million (RM9.13 million) and Euro 2.25 million (RM10.27 million) respectively for the next 3 years from the date of completion of the agreement.

The manufacturing plant of FBM in Jebel Ali Free Zone has been in operation since 1994. The plant manufactures aircooled heat exchangers, shell and tube exchanges, reactors, pressure vessels, condensers and desalination equipment for the oil and gas industry.

KNMI has also signed a Commercial Co-operation Agreement (CCA) with FBM for joint and exclusive marketing and manufacturing of FBMs process equipment within the Asean and China regions.

The JV and CCA would enable KNM and FBM to expand their global manufacturing reach to cover the Middle East and North Africa regions, Asean region and China, and represents a unified effort by both KNM and FBM to develop and enhance the market share of both KNM and FBM in the oil and gas industry.

The JV and CCA also allows KNM to tap the technical expertise of a leading European process equipment manufacturer and also spearhead KNMs plans for developing new international markets and higher value added products in the process equipment engineering industry.

The partnership with FBM represents an important milestone to KNM, and signals KNMs leadership in the region for process equipment especially for the oil and gas industry. With this joint venture, KNM today has key manufacturing facilities in the Middle East, China, and Malaysia.

FBM is currently one of the top 2 companies in the world for aircooled heat exchangers and the partnership with KNM will spearhead FBMs effort in this region. Further, the joint venture shop in Jebel Ali will provide a platform for KNM to expand its reach in the Middle East region.

The entire arrangement is expected to be completed by the third quarter of 2004.


Announcement Info

Company NameKNM GROUP BERHAD  
Stock Name KNM
Date Announced21 May 2004  
CategoryGeneral Announcement
Reference NoKG-040521-33319

Related Announcements for KNM
Date Title
17/04/2015 NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS): FUND RAISING KNM GROUP BERHAD (“KNM” OR "COMPANY") RENOUNCEABLE RIGHTS ISSUE OF UP TO 430,431,442 NEW ORDINARY SHARES OF RM0.50 EACH IN KNM GROUP BERHAD (“KNM”) (“KNM SHARE(S)” OR “SHARE(S)”) (“RIGHTS SHARE(S)”) ON THE BASIS OF 1 RIGHTS SHARE FOR EVERY 5 EXISTING KNM SHARES HELD AS AT 5.00 P.M. ON FRIDAY, 27 MARCH 2015, TOGETHER WITH UP TO 215,215,721 NEW FREE DETACHABLE WARRANTS (“WARRANT(S) B”) ON THE BASIS OF 1 WARRANT B FOR EVERY 2 RIGHTS SHARES SUBSCRIBED FOR, AT AN ISSUE PRICE OF RM0.50 PER RIGHTS SHARE (“RIGHTS ISSUE WITH WARRANTS”)
09/04/2015 OTHERS New Orders Secured Year To Date/YTD2015 by KNM Process Systems Sdn Bhd amounting to approximately USD56.67 million (RM204.01 million)
18/03/2015 TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) NON RELATED PARTY TRANSACTIONS
16/03/2015 TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): NON RELATED PARTY TRANSACTIONS Joint Venture Agreement between KNM Process Systems Sdn Bhd (“KNMPS”) and Hansol EME Co., Ltd (“Hansol”)
13/03/2015 TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS): NON RELATED PARTY TRANSACTIONS SHARE PURCHASE AGREEMENT BETWEEN KNM RENEWABLE ENERGY SDN BHD AND FE GLOBAL/ASIA CLEAN ENERGY SERVICES FUND L.P., FEGACE ASIA SUB-FUND, L.P. AND GLOBAL CLEAN ENERGY CORP. SPC
13/03/2015 OTHERS KNM GROUP BERHAD (“KNM” OR “COMPANY”) (I) ADJUSTMENTS TO THE EXERCISE PRICE AND THE NUMBER OF OUTSTANDING WARRANTS 2012/2017 OF KNM (“WARRANT(S) A”) IN ACCORDANCE WITH THE PROVISIONS OF THE DEED POLL DATED 4 OCTOBER 2012 (“DEED POLL A”) PURSUANT TO THE RENOUNCEABLE RIGHTS ISSUE OF UP TO 430,431,442 NEW ORDINARY SHARES OF RM0.50 EACH IN KNM (“KNM SHARE(S) OR “SHARE(S)”) (“RIGHTS SHARE(S)”) ON THE BASIS OF 1 RIGHTS SHARE FOR EVERY 5 EXISTING KNM SHARES TOGETHER WITH UP TO 215,215,721 NEW FREE DETACHABLE WARRANTS (“WARRANT(S) B”) ON THE BASIS OF 1 WARRANT B FOR EVERY 2 RIGHTS SHARES SUBSCRIBED FOR (“RIGHTS ISSUE WITH WARRANTS”); AND (II) ADJUSTMENTS TO THE EXERCISE PRICE AND THE NUMBER OF KNM’S EMPLOYEES’ SHARE OPTION SCHEME (“ESOS”) OPTIONS IN ACCORDANCE WITH THE PROVISIONS OF THE ESOS BY LAWS ADOPTED BY THE COMPANY ON 15 MAY 2014 (“ESOS BY LAWS”) PURSUANT TO THE RIGHTS ISSUE WITH WARRANT
13/03/2015 MULTIPLE PROPOSALS KNM GROUP BERHAD (“KNM” OR “COMPANY”) (I) RENOUNCEABLE RIGHTS ISSUE OF UP TO 430,431,442 NEW ORDINARY SHARES OF RM0.50 EACH IN KNM (“KNM SHARE(S) OR “SHARE(S)”) (“RIGHTS SHARE(S)”) ON THE BASIS OF 1 RIGHTS SHARE FOR EVERY 5 EXISTING KNM SHARES HELD ON AN ENTITLEMENT DATE TO BE DETERMINED LATER TOGETHER WITH UP TO 215,215,721 NEW FREE DETACHABLE WARRANTS (“WARRANT(S) B”) ON THE BASIS OF 1 WARRANT B FOR EVERY 2 RIGHTS SHARES SUBSCRIBED (“RIGHTS ISSUE WITH WARRANTS”); (II) INCREASE IN THE AUTHORISED SHARE CAPITAL OF KNM FROM RM1,125,000,000 COMPRISING 2,250,000,000 KNM SHARES TO RM2,500,000,000 COMPRISING 5,000,000,000 KNM SHARES (“INCREASE IN AUTHORISED SHARE CAPITAL”); AND (III) AMENDMENT TO THE MEMORANDUM OF ASSOCIATION OF KNM (“AMENDMENT”); (COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)
13/03/2015 MULTIPLE PROPOSALS KNM GROUP BERHAD (“KNM” OR “COMPANY”) (I) RENOUNCEABLE RIGHTS ISSUE OF UP TO 430,431,442 NEW ORDINARY SHARES OF RM0.50 EACH IN KNM (“KNM SHARE(S) OR “SHARE(S)”) (“RIGHTS SHARE(S)”) ON THE BASIS OF 1 RIGHTS SHARE FOR EVERY 5 EXISTING KNM SHARES HELD ON AN ENTITLEMENT DATE TO BE DETERMINED LATER TOGETHER WITH UP TO 215,215,721 NEW FREE DETACHABLE WARRANTS (“WARRANT(S) B”) ON THE BASIS OF 1 WARRANT B FOR EVERY 2 RIGHTS SHARES SUBSCRIBED (“RIGHTS ISSUE WITH WARRANTS”); (II) INCREASE IN THE AUTHORISED SHARE CAPITAL OF KNM FROM RM1,125,000,000 COMPRISING 2,250,000,000 KNM SHARES TO RM2,500,000,000 COMPRISING 5,000,000,000 KNM SHARES (“INCREASE IN AUTHORISED SHARE CAPITAL”); AND (III) AMENDMENT TO THE MEMORANDUM OF ASSOCIATION OF KNM (“AMENDMENT”); (COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)
03/03/2015 MULTIPLE PROPOSALS KNM GROUP BERHAD (“KNM” OR “COMPANY”) (I) RENOUNCEABLE RIGHTS ISSUE OF UP TO 430,490,762 NEW ORDINARY SHARES OF RM0.50 EACH IN KNM (“KNM SHARE(S) OR “SHARE(S)”) (“RIGHTS SHARE(S)”) ON THE BASIS OF 1 RIGHTS SHARE FOR EVERY 5 EXISTING KNM SHARES HELD ON AN ENTITLEMENT DATE TO BE DETERMINED LATER TOGETHER WITH UP TO 215,245,381 NEW FREE DETACHABLE WARRANTS (“WARRANT(S) B”) ON THE BASIS OF 1 WARRANT B FOR EVERY 2 RIGHTS SHARES SUBSCRIBED (“RIGHTS ISSUE WITH WARRANTS”); (II) INCREASE IN THE AUTHORISED SHARE CAPITAL OF KNM FROM RM1,125,000,000 COMPRISING 2,250,000,000 KNM SHARES TO RM2,500,000,000 COMPRISING 5,000,000,000 KNM SHARES (“INCREASE IN AUTHORISED SHARE CAPITAL”); AND (III) AMENDMENT TO THE MEMORANDUM OF ASSOCIATION OF KNM (“AMENDMENT”); (COLLECTIVELY REFERRED TO AS THE “PROPOSALS”)
17/02/2015 MULTIPLE PROPOSALS KNM GROUP BERHAD (“KNM” OR “COMPANY”) (I) RENOUNCEABLE RIGHTS ISSUE OF UP TO 430,490,762 NEW ORDINARY SHARES OF RM0.50 EACH IN KNM (“KNM SHARE(S) OR “SHARE(S)”) (“RIGHTS SHARE(S)”) ON THE BASIS OF 1 RIGHTS SHARE FOR EVERY 5 EXISTING KNM SHARES HELD ON AN ENTITLEMENT DATE TO BE DETERMINED LATER TOGETHER WITH UP TO 215,245,381 NEW FREE DETACHABLE WARRANTS (“WARRANT(S) B”) ON THE BASIS OF 1 WARRANT B FOR EVERY 2 RIGHTS SHARES SUBSCRIBED (“RIGHTS ISSUE WITH WARRANTS”); (II) INCREASE IN THE AUTHORISED SHARE CAPITAL OF KNM FROM RM1,125,000,000 COMPRISING 2,250,000,000 KNM SHARES TO RM2,500,000,000 COMPRISING 5,000,000,000 KNM SHARES (“INCREASE IN AUTHORISED SHARE CAPITAL”); AND (III) AMENDMENT TO THE MEMORANDUM OF ASSOCIATION OF KNM (“AMENDMENT”); (COLLECTIVELY REFERRED TO AS THE “PROPOSALS”