KNM Group Berhad : Benefiting From Borsig Tax Incentive

Tax incentive of RM1.4bn. KNM announced yesterday that the Ministry of Finance had approved a total tax incentive of RM1.4bn arising from the acquisition of Borsig in 2008. Recall that KNM acquired Borsig for €350m back in 2008. The tax incentive will be spread over four years, which implies that RM350m can be used to offset KNM’s domestic-based earnings per annum beginning 2010. We understand that if KNM’s FY10
domestic-based earnings were to be lower than RM350m, the excess tax credit can be carried forward into FY11-13.

KNM Group Berhad : Benefiting From Borsig Tax Incentive - 08/04/2010