KNM forms JV to undertake projects in Sarawak

KUALA LUMPUR (July 7): KNM Group Bhd said its wholly-owned subsidiary, KNM Process Systems Sdn Bhd, is forming a 51-49 joint venture (JV) company with ADAP Capital Sdn Bhd to participate in oil, gas and petrochemical projects in Sarawak.

According to exchange filing, ADAP Capital is a bumiputera-controlled company which was incorporated in Sarawak and is principally involved in asset portfolio management, as well as investment and private equity matters.

KNM said the scope of the JV company includes engineering procurement and construction for oil, gas and petrochemical plants; manufacture and supply for the relevant equipment for the plants as well as build, own and operate strategic projects.

As for the salient terms of the JV, it was stated that KNM shall be responsible for the business development with clients and state government of Sarawak to secure projects, while ADAP Capital shall be responsible for the technical proposal for the projects.

In separate filings, KNM said its founder and chief executive officer Lee Swee Eng has announced his retirement, with the group's chief financial officer Tan Koon Ping succeeding him.

Meanwhile, Lee's spouse Gan Siew Lit will be redesignated as KNM's executive vice chairman from her role of executive director.

Shares in KNM closed down one sen or 4.44% to 21.5 sen, giving it a total market capitalisation of RM562.2 million.