Crooks Swindlers Liars

As promised , here's another one on Tee Siew Kiong.

As a Political Secretary to a Minister , one earns with all the perks put in , not more than RM 7000 per month . However I am flabbergasted as to how one can afford to buy the ENTIRE EQUITY INTEREST IN IRESON PERNIAGAAN SDN BHD for a SUM of RM2,710,000 ( two million seven hundred and ten thousand ringgit ) That is indeed a huge sum that many high wage earners also cannot afford to buy .

IPSB is a private limited company incorporated in Malaysia on 6 June 1980. The authorised share capital of IPSB is RM500,000 comprising 500,000 ordinary shares of RM1.00 each of which 310,500 ordinary shares have been issued and fully paid-up. The principal activity of IPSB is property investment.

IPSB owns a single storey detached factory building erected on all that leasehold industrial land held under issue document of title No. H.S(D)64314, P.T.D No. 8778 , Mukim of Senai-Kulai, District of Johor Bahru and State of Johor measuring approximately 1.21411 hectres and bearing postal address of PLO 15, Jalan Perindustrian, Kawasan Perindustrian Senai I, 81400 Senai, Johor Darul Takzim (“Property”). The Property is situated within a locality known as Kawasan Perindustrian Senai I, approximately 29 kilometeres to the north-west of Johor Bahru city centre and about 5 kilometres to the north-east of Senai town centre. It is accessible from Senai town centre via Skudai Highway, Senai Airport Highway and a ‘U’ turn back at the Senai International Airport roundabout thence onto Jalan Perindustrian leading to the premise.

See the entire Sales and Purchase contents .

DISPOSAL OF THE ENTIRE EQUITY INTEREST IN IRESON PERNIAGAAN SDN BHD TO TEE SIEW KIONG AND LEE CHOON GUEK FOR A TOTAL CASH CONSIDERATION OF RM2,710,000 (“DISPOSAL”)


1. Introduction

The Board of Directors of KYM Holdings Bhd (“KYM”) is pleased to announce to the Exchange that the Company has on 5 September 2008 entered into a Sale & Purchase Agreement (“SPA”) with Tee Siew Kiong (NRIC No. 640715-01-5317) and Lee Choon Guek (NRIC No. 660602-01-6012) (“Purchasers”) for the disposal of 310,500 ordinary shares of RM1.00 (“Sale Shares”) in equal shares, representing the entire issued and paid-up capital of Ireson Perniagaan Sdn Bhd (“IPSB”) for a total cash consideration of RM2,710,000 (“Disposal”).

Upon completion of the Disposal, IPSB shall cease to be a subsidiary of KYM.


2. Information on IPSB

IPSB is a private limited company incorporated in Malaysia on 6 June 1980. The authorised share capital of IPSB is RM500,000 comprising 500,000 ordinary shares of RM1.00 each of which 310,500 ordinary shares have been issued and fully paid-up. The principal activity of IPSB is property investment.

IPSB owns a single storey detached factory building erected on all that leasehold industrial land held under issue document of title No. H.S(D)64314, P.T.D No. 8778 , Mukim of Senai-Kulai, District of Johor Bahru and State of Johor measuring approximately 1.21411 hectres and bearing postal address of PLO 15, Jalan Perindustrian, Kawasan Perindustrian Senai I, 81400 Senai, Johor Darul Takzim (“Property”). The Property is situated within a locality known as Kawasan Perindustrian Senai I, approximately 29 kilometeres to the north-west of Johor Bahru city centre and about 5 kilometres to the north-east of Senai town centre. It is accessible from Senai town centre via Skudai Highway, Senai Airport Highway and a ‘U’ turn back at the Senai International Airport roundabout thence onto Jalan Perindustrian leading to the premise.

The tenure of the Property is 60 years leasehold expiring on 11 January 2043.

The built-up areas of the single storey detached factory building and other miscellaneous structures are as follows:

Built-Up Area/Gross Floor Area (m2)
Single storey detached factory annexed with a TNB substation 7,870.00
Open shed 341.42
Guard House 11.15

The age of the buildings is about 14 years old. The Property has been vacant for about three (3) years and is free from encumbrances.

The category of the land use of the Property as stated in the issue document of title is “Perusahaan/Perindustrian”. The expressed conditions as stated in the issue document of title to the Property are as follows:

i) Tanah ini hendaklah digunakan sebagai Kawasan Industri Sederhana untuk tujuan Perusahaan Getah – dryer machines, fuel tanks, shaft bearing rollers machines, dibina mengikut pelan yang diluluskan oleh Pihak Berkuasa Tempatan yang berkenaan.
ii) Segala kekotoran dan pencemaran akibat daripada aktiviti ini hendaklah disalurkan/dibuang ke tempat-tempat yang telah ditentukan oleh Pihak Berkuasa Berkenaan.

iii) Segala dasar dan syarat yang telah ditetapkan dan dikuatkuasakan dari semasa ke semasa oleh Pihak Berkuasa Berkenaan hendaklah dipatuhi.

State authority approval is required for all sale, charge or transfer of the Property.

The Property which was acquired by IPSB in 1983 for RM263,340, is the only property of IPSB. The Property was re-valued by an independent revaluer, Raine & Horne International Zaki + Partners Sdn. Bhd. on 31 January 2008 at RM3,500,000, using the Comparison Method. The net book value of the Property based on the last audited accounts of IPSB as at 31 January 2008 is RM3,500,000.


3. Details of the Disposal

The sale consideration of RM2,710,000 was arrived at based on a willing-buyer-willing-seller basis after taking into consideration the Forced Sale Value of the Property and was transacted on ‘as-is-where-is’ basis. The Forced Sale Value as assessed by Raine & Horne International Zaki + Partners Sdn. Bhd. on 31 January 2008 is RM2,980,000.

The Disposal is expected to be completed within fourteen (14) days from the Cut-Off Date (defined below)


4. Salient Terms of the SPA

The salient terms of the SPA are as follows:

(a) The sale consideration is to be satisfied in the following manner:-

(i) the sum of Ringgit Malaysia Fifty Four Thousand Two Hundred (RM54,200-00) only being 2% of the sale consideration to be paid as the Earnest Deposit prior to the execution of SPA being part payment towards the account of the sale consideration;

(ii) the sum of Ringgit Malaysia Four Hundred Eighty Seven Thousand Eight Hundred (RM487,800.00) only being 18% of the sale consideration (hereinafter referred to as “the Balance Deposit”) to paid to KYM upon execution of this SPA. The Earnest Deposit and the Balance Deposit shall hereinafter be referred to collectively as “the Deposit”).

(iii) the Balance Purchase Price of Ringgit Malaysia Two Million One Hundred And Sixty Eight Thousand (RM2,168,000.00) only shall be paid on the date of completion.

(b) KYM shall write off the entire inter-company loan to IPSB amounting to RM2,464,669 as of 31 July 2008.

(c) The Purchasers shall be entitled at any time after the date hereof but not later than three (3) months from the date of the SPA (“the Cut-Off Date”), and at its own cost and expenses, to appoint an independent firm of accountants or the Purchasers’ own accountants to conduct a due diligence inquiry of IPSB.

(d) The Sale Shares shall be acquired by the Purchasers free from all liens, charges, mortgages, claims and other encumbrances and together with all rights and benefits attaching thereto. There are no liabilities including contingent liabilities and guarantees to be assumed by the Purchasers arising from the acquisition of the Sale Shares.

Rationale for the Disposal

The Disposal is in line with the Company’s diversification plan to dispose of non-core assets. The Disposal will enable KYM to realize immediate cash flow of RM2,710,000 which will be utilized as working capital.


6. Financial Effects of the Disposal

6.1 Earnings

The Disposal is expected to be completed by fourth quarter of the financial year ending 31 January 2009. KYM Group’s earnings per share for the financial year ending 31 January 2009 is expected to decrease as a result of the Disposal. The expected loss on completion of the Disposal is approximately RM794,245 which mainly due to a written off of inter company loan amounting to RM2,464,669.

6.2 Net Assets

The Disposal will not have material effects on the net asset per share of KYM Group.

6.3 Share Capital

The Disposal will not have any effect on the issued and paid-up capital of KYM.

6.4 Substantial Shareholders’ Shareholding

The Disposal will not have any effect on the substantial shareholders’ shareholdings of KYM.


7. Conditions to the Disposal

The Disposal is not subject to the Company’ shareholders’ approval.


8. Directors’ and/or Major Shareholders’ Interest

None of the Directors or major shareholders or persons connected to them has any interest, direct or indirect, in the above transaction.


9. Statement by Directors

After due consideration of the terms of the Disposal, the Board of Directors is of the opinion that the Disposal is in the best interest of the Company.


10. Departure from Guidelines

The Disposal has not departed from the Securities Commission’s Policies and Guidelines on Offering of Equity and Equity-Linked Securities.


11. Documents for Inspection

A copy of the SPA is available for inspection during normal office hours (except public holidays) at the registered office of KYM at 12 Lorong Medan Tuanku Satu 50300 Kuala Lumpur from the date of this announcement.

This announcement is dated 5 September 2008.
Extracted from Bursa Saham KL

The completion date for the land scam surrounding the building of a polyclinic in Johore in my previous article is also around that time frame , enough time to collect the monies from the previous transaction to finance this purchase . I am not accusing anyone here however there is an element of shall we say , corruption , kick backs , insider trading and what not .