PETALING JAYA: Perak Corp Bhd’s (PCB) unit is expected to write off RM15.74mil, following the termination of its licence agreement with United States animation studio DreamWorks Animation LLC.
In its filings with Bursa Malaysia, PCB said its 51%-owned subsidiary – Animation Theme Park Sdn Bhd (ATP) – had officially discontinued the licence agreement dated Jan 1 for the establishment and operation of DreamWorks’ attractions within the Movie Animation Park Studios (MAPS) theme park in Ipoh, Perak.
“The reason for the discontinuance is that ATP and DreamWorks have not reached an agreement to open DreamWorks’ attractions to the public by Aug 1, 2018,” PCB said.
“ATP has the option to extend the licence agreement to Sept 30, but decided not to exercise the option in order to accelerate the full opening of MAPS as soon as possible,” it added. MAPS was soft-opened on June 26, 2017 without DreamWorks’ attractions.
PCB, a key subsidiary of Perbadanan Kemajuan Negeri Perak Group, is mainly involved in property development, ports and logistics, as well as hospitality and tourism.
Based on the audited financial statements of ATP for the financial year ended Dec 31, 2017, the related intellectual property rights acquired under the licence agreement, which are classified as intangible assets, have a carrying value of RM17.461mil.
“This amount, together with the related inventories and estimated DreamWorks attractions development in progress cost of RM15.74mil, will be written off in the current financial year,” PCB said.
PCB said the decision was made in the best interest of ATP to ensure its ability to continue to operate as a going concern, and the group.
“The full opening of MAPS in the near future is expected to increase visitor attendance numbers, entertainment value and repeat visitors to MAPS, which will then translate into higher revenue for MAPS,” PCB said.
The group said the DreamWorks attractions zone was now undergoing renovation to remove all DreamWorks’ intellectual property and, upon complete removal, ATP intends to open the zone with or without any third party’s intellectual property.