TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSAward of Contract from Single Buoy Moorings Inc. to KNM Wholly-Owned…

Posted: August 14, 2020 at 4:50 pm

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONS Award of Contract from Single Buoy Moorings Inc. to KNM Wholly-Owned Subsidiary, KNM Process Systems Sdn Bhd Amounting to Approximately MYR 17,132,641.93

KNM GROUP BERHAD

Type

Announcement

Subject

TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS)

NON RELATED PARTY TRANSACTIONS

Description

Award of Contract from Single Buoy Moorings Inc. to KNM Wholly-Owned

Subsidiary, KNM Process Systems Sdn Bhd Amounting to Approximately MYR

17,132,641.93

1. Introduction

KNM Group Berhad ("KNM") is pleased to announce that its wholly-owned subsidiary, KNM Process Systems Sdn Bhd ("KNMPS"), had on 13 August 2020 received a Purchase Order ("PO"), bearing PO No. 001.17043.000078 from Single Buoy Moorings Inc. ("SBM Offshore") for the supply of PME pressure vessels separators for the Prosperity FPSO Project amounting to USD 4,081,630 (equivalent to approximately MYR 17,132,641.93 based on the exchange rate of USD 1.00 : RM 4.1975) ("Transaction").

The supply and delivery duration of the Transaction is for a period from 13 August 2020 until 1 June 2021.

2. Information About the Parties

KNMPS was incorporated as a private limited company under the laws of Malaysia on 28 June 1990 and it is principally involved in the design, engineering, procurement and manufacturing of process equipment, including without limitation pressure vessels, reactors, columns and towers, drums, heat exchangers, air finned coolers, process gas waste heat boilers and specialized shell and tube heat exchangers, condensers, spheres, process tanks, mounded bullets, process skid packages and turnkey storage facilities as well as technical and project management services in relation to process equipment, plant facilities and general facilities for the oil, gas, petrochemicals, minerals processing and renewable energy industries worldwide inclusive of solar PV installation work and solar leasing.

SBM Offshore, a company incorporated in Switzerland and headquartered in Amsterdam is principally involved in the design, supply, installation, operation and the life extension of floating production solutions for the offshore energy industry.

3. Financial Effect of the Transaction

The Transaction is expected to contribute positively to KNM Group's earnings for the financial years ending 31 December 2020 and 31 December 2021.

4. Risk Factors

The Transaction is subject to certain commercial and financial risks mainly in the power, oil, gas, petrochemical, and energy industries. These include changes in general economic conditions such as, but not limited to inflation, environmental, health and safety regulations, taxation, foreign exchanges, interest rates, labour and material supply, changes in business and operating conditions such as, but not limited to government and statutory regulations and deterioration in prevailing market conditions.

KNM is already operating in these industries and hence would continue to be exposed to risk factors that they currently face whilst operating in these industries.

Although KNM with its vast experience may undertake efforts to mitigate the various risk factors, there is no assurance that any change in the above risk factors will not have a material adverse effect on the business and operations of KNM.

5. Approval(s)

The Transaction is not subject to the approval of the shareholders of KNM or any regulatory authority in Malaysia or in any other country.

6. Directors' Statement

Having considered all aspects of the Transaction, the Board of Directors is of the opinion that the Transaction is in the best interest of KNM.

7. Directors' and Major Shareholders' Interest

None of the directors and/or major shareholders of KNM, and/or any persons connected with them, have any direct or indirect interest in the Transaction.

8. Documents for Inspection

Details of the Transaction are available for inspection at the registered office of KNM located at 15 Jalan Dagang SB 4/1, Taman Sungai Besi Indah, 43300 Seri Kembangan, Selangor Darul Ehsan, Malaysia for three (3) months from the date of this Announcement during normal business hours from Mondays to Fridays.

This announcement is dated 14 August 2020.

Disclaimer

KNM Group Bhd published this content on 14 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2020 13:42:00 UTC

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TRANSACTIONS (CHAPTER 10 OF LISTING REQUIREMENTS) : NON RELATED PARTY TRANSACTIONSAward of Contract from Single Buoy Moorings Inc. to KNM Wholly-Owned...

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