KNM venture into Thai renewable energy market

PETALING JAYA: KNM Group Bhd plans to enhance its participation in Thailand's renewable energy sector and provide recurring income for the group in the long term by buying two Thai companies for US$24 million (RM88.49 million).
KNM's wholly-owned subsidiary, KNM Renewable Energy's Sdn Bhd has signed a share purchase agreement with FE Global/Asia Clean Energy Services Fund LP, FEGACE Asia Sub-Fund LP and Global Clean Energy Corp SPC to acquire their entire equity interest in ABL Bio-Fuels Ltd and Asia Biofuels II Ltd (ABL Group).
ABL Group owns a combined 72% equity interest in Impress Ethanol Co Ltd (IEL) and a 49% equity interest in Impress Farming Co Ltd (IFL).
IEL is involved in the production and sale of fuel grade and industrial grade ethanol, while IFL is involved in the trading and supply of cassava for bioethanol purposes.
In a stock exchange filing last Friday, KNM said the proposed acquisition will finance the purchase through internal funds and/or borrowings and/or KNM shares, and is expected to be completed by the second half of the year.
KNM said it will seek the approval of its shareholders at an extraordinary general meeting in the event the consideration is partly satisfied in KNM shares.
"The proposed acquisition may affect the share capital of KNM and dilute the equity interest of the substantial shareholders in KNM if the consideration is partly settled in KNM shares to be issued up to the sum of US$12 million (RM44.24 million)," said KNM.