Yikon Corp ... May 09

Yikon Corporation Bhd's subsidiary Yikon Jewellery Industry Sdn Bhd is selling a parcel of leasehold land in the Bayan Lepas industrial estate, Penang — together with the building — to Northern Corridor Implementation Authority (NCIA) for RM10.5 million cash.

NCIA is the authority responsible for the implementation of strategic socio-economic development in the Northern Corridor Economic Region (NCER).

The lease is for 60 years to Oct 31, 2053, with provisional land area of about 6,173 sq metres (66,446 sq feet), with a three-storey detached factory cum one-storey office building.

The net book values of the land, building and fixed assets as at Dec 31, 2008, were RM2.08 million, RM6.27 million and RM1.17 million respectively.

The proposed disposal was in line with its objective of unlocking the value of those assets currently not used in its core business and to generate cash flow for repayment of bank borrowings and working capital.

Based on its consolidated audited accounts for the 14 months ended Dec 31, 2008, and on the assumption that the disposal had been effected and completed on that date, it would have given rise to a net gain of about RM757,255 after taking into account estimated expenses of RM220,000. The group's net assets would rise from RM22.87 million to RM23.63 million.