KUALA LUMPUR (Oct 9): Datuk Seri Mahmud Abu Bekir Taib, the son of Sarawak Yang di-Pertua Negeri Tun Abdul Taib Mahmud, has emerged as a substantial shareholder of KNM Group Bhd after acquiring 203.47 million shares or a 5.03% stake in the financially-distressed company that is currently embroiled in a boardroom tussle.

Abu Bekir is currently the deputy group chairman and non-independent and non-executive director of Sarawak-based cement manufacturer Cahya Mata Sarawak Bhd (CMS).

According to KNM's bourse filing on Monday, Abu Bekir bought the shares on Oct 6. The group did not reveal the purchase price, but based on its closing price of 17 sen on Oct 6, Abu Bekir could have acquired the stake for about RM34.59 million.

KNM's share price reversed its upward trend on Monday, rising to as high as 17.5 sen before closing at 14.5 sen, valuing the group at RM586.66 million.

The oil and gas engineering outfit, which has been loss-making since the financial year ended Dec 31, 2021, is struggling to stay above water.

It will hold an extraordinary general meeting (EGM) on Oct 16, with a group of shareholders collectively holding more than 10% of KNM's shares seeking to oust the current board.

In a separate filing, KNM notified that its former executive vice chairman Gan Siew Liat has ceased to be a substantial shareholder after she disposed of a 0.37% stake in the group.

Gan sold some 8.05 million indirect shares held via Aveda Assets Capital on Oct 5, and another seven million shares on Oct 6, the filing showed.

The offloaded shares amount to about RM2.6 million based on the closing price of 17.5 sen on Oct 5 and 17 sen on Oct 6.

Following this, Gan’s equity interest in the company has come down to about 4.92%.

Earlier, MAA Group Bhd, which holds an 8.55% equity stake in KNM, announced that it intends to vote in favour of retaining the current KNM directors, and vote against the proposed appointment of new candidates, at the Oct 16 EGM.

MAA is a flagship of KNM chairman Tunku Datuk Yaacob Khyra, whom new KNM substantial shareholder German billionaire Andreas Heeschen and several other shareholders want to remove.

On Sept 5, Heeschen with his 7.91% stake, acting with other shareholders who hold a 10.68% stake in the group, proposed to unseat the current nine-member board.

The group is seeking to appoint Johor Princess Tunku Kamariah Aminah Maimunah lskandariah Sultan Iskandar to replace Yaacob, who has a 9.44% indirect stake.

Besides Yaacob, the group is also looking to remove the rest of KNM’s board comprising Tan Sri Zulhasnan Rafique, Ravindrasingham Balasingham, Yee Hong Ho, Steve Ho Soo Woon, Thulasy Suppiah, Datuk Uwe Ahrens, James Beltran and Datuk Naresh Mohan.

Six individuals have been proposed as new directors, namely Heeschen, former KNM executive director Flaavio Porro, former chairman of Magna Prima Bhd and Komakcorp Bhd Datuk Abd Ghani Yusof, Jiankun International Bhd CEO Edwin Silvester Das, SMTrack Bhd's executive director Datuk Zaidi Mat Isa @ Hashim,and CN Asia Corp Bhd executive director William Van Vliet II

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