DreamWorks' attraction at Maps discontinued

Kuala Lumpur: Perak Corporation Bhd (PCB) on Wednesday announced that its indirect 51 per cent-owned subsidiary, Animation Theme Park Sdn Bhd, (ATP) has officially discontinued the Licence Agreement entered into with DreamWorks Animation L.L.C. for the establishment and operation of DreamWorks' attractions within the Movie Animation Park Studios (Maps) effective Aug 1, 2018.The reason for the discontinuance was because ATP and DreamWorks had not reached an agreement to open the DreamWorks' attractions to the public by Aug 1, 2018, said PCB in a filing with Bursa Malaysia on Wednesday.

ATP had the option to extend the licence agreement to Sept 30, 2018 but decided not to exercise the option in order to accelerate the full opening of the Maps as soon as possible.

The Maps had a soft opening on June 26, 2017 without the DreamWorks' attractions.

PCB said ATP would work closely and potentially sign a mutual termination agreement with DreamWorks to ensure all outstanding obligations were fully met in order for the both parties to exit the agreement amicably.

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This would include removing all DreamWorks' intellectual properties from Maps before the zone designated for the DreamWorks' attractions is open to public, it added, explaining further that DreamWorks' attractions zone was now undergoing renovation process to remove all DreamWorks' intellectual properties.

Upon complete removal, ATP intended to open the zone with or without any third party's intellectual property.

Based on the audited financial statements of ATP for the financial year ended Dec 31, 2017, the related intellectual properties rights acquired under the licence agreement were classified as intangible assets with a carrying value of RM17.46 million.

This amount, together with the related inventories and estimated DreamWorks' attractions development in progress cost of RM15.74 million, will be written off in the current financial year.

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PCB said its board of directors were of the opinion that the decision was made in the best interest of ATP, to ensure its ability to continue to operate as a going concern.

The full opening of Maps in the near future was expected to increase the number of visitors' attendance, entertainment value and repeat visitors to the Maps which would then translate into higher revenue for Maps, it added. – Bernama

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