5/7/06 (Ther Edge News)   - KNM Group Bhd is acquiring a 90% stake in Virgo Pulse Sdn Bhd group (VPSB), a maker of industrial boilers, for RM27.5 million cash in a strategic partnership deal that will allow it to expand into new industrial sectors such as power, palm oil and biomass.

In a statement on July 5, KNM said it had signed a memorandum of agreement with Tang Vee Mun to register the intention of both KNM and shareholders of VPSB, Tang and Datuk Ghazali Mat Ariff to jointly develop VPSB group's business.

It will fund the proposed acquisition via internal funds and borrowings.

KNM said their respective expertise would enable the KNM group to have a wider range of products, including industrial boilers and energy systems in industry sectors other than oil, gas, petrochemicals and minerals processing.

It said they would further develop and expand the VPSB group's core business of manufacturing industrial boilers using its own "Vickers Hoskins" brand name.