KUALA LUMPUR: KNM Group Bhd is embarking on a bold journey to regain its prominent position under a potential new leadership of Flavio Porro.
Porro is a former executive director of KNM who may rejoin the group's board as part of the new board of directors proposed by certain shareholders led by German businessman Andreas Heeschen.
KNM has seen its market capitalisation and share price plummet to an all-time low this year.
The company believes the decline is not reflective of its intrinsic value, which includes substantial assets, human capital and a rich history.
"The situation is dire, and immediate action is required to halt the company's downward spiral,' Porro claimed in a statement.
He highlighted that one of the most alarming issues that has compelled him to re-engage with KNM is the current board's hasty and ill-advised decision to liquidate valuable assets at fire-sale prices.
Meanwhile, in response to KNM chief executive officer and managing director Ravindrasingham Balasingham claiming that the shareholders were attempting to take control of the group as a cheaper way to acquire Borsig GmbH and FBM Group, Porro said this is misleading.
He said KNM does not intend to acquire Borsig for cheap, but plans to introduce a five-year strategy to address the company's growth and debt repayment.
"Our primary focus is on a holistic and sustainable approach to growth and debt repayment. We are supported by a robust group of shareholders with strong roots in Malaysia, as well as international markets like the US, EU, UK and Eastern markets," he said.
Porro said the proposed board intends to establish a regularisation plan which aims to align with the company's long-term strategic goals to enable it to leverage its competitive advantages.
Addressing an earlier plan to dispose of Borsig, he said while the sale might have been the right decision at that time, the new board of directors aims to re-evaluate the approach and other decisions to maximise shareholder value.
"We aim to open new markets and lines of business, focusing on renewable energy and engineering.
"We believe that with the right leadership and strategy, KNM Group can once again become a leading player in the industry.
Weighed down by debt and liquidity issues, KNM, now a Practice Note 17 company, is undertaking an asset monetisation exercise.
It previously attempted to dispose of Borsig at a discount for €220.8 million (RM1.1 billion), but the deal did not materialise.
KNM must submit a regularisation plan to regulators by end-October.
The extraordinary general meeting to deliberate on the proposed board changes will be held on Oct 16.