KUALA LUMPUR: The Italian government has rejected KNM Group Bhd's bid to dispose of its entire stake in FBM Hudson Italiana SpA (FBM Hudson) for Euro 16.5 million (RM76 million) to BM Carpenterie, Oil and Gas Srl (BMC), and Officine Piccoli SpA (Officine).
The company's share price opened half a sen lower at 9 sen today, down from yesterday 9.5 sen close.
In a filing with Bursa Malaysia Securities yesterday, the company said one of the conditions precedent for the proposed disposal, which is to obtain the Golden Power Clearance, was rejected by the Italian government.
"Presently, the management of KNM is reviewing and discussing with all the parties concerned for the steps moving forward. Further development in relation to the proposed disposal will be announced in due course," said the company on Thursday.
The Italian government's Golden Power refers to its power to limit or stop any foreign direct investment and corporate transactions involving strategic assets.
This was the second time the Italian government rejected the company's proposed disposal.
The Italian government had rejected KNM's proposed sale to the United Arab Emirates' Petro MAT FZCO for 22 million euros, last November.
Meanwhile, resolutions put forward by five shareholders of the company to appoint new directors were rejected at its 21st Annual General Meeting held on Thursday.
Shareholders Tan Khye Yinn, Chang Hui Kee, Mah Wai Leon and Wang Hee Heng had proposed for election at the AGM, Wong Toh Sing, William H Vanvliet III, Wan Kamaruddin Wan Mohamed Ali and Sakthi Kumar Ramadas as directors of the company.
Shareholder Sazini Abdullah had proposed Manfred Gustav Von Nostitz.