KUALA LUMPUR (Aug 8): Perak Corp Bhd's indirect 51%-owned subsidiary Animation Theme Park Sdn Bhd (ATP) has dropped plans to include DreamWorks' attractions at its Movie Animation Park Studio (MAPS) in Ipoh, Perak, after both parties failed to reach agreement to open the DreamWorks' attractions to the public by Aug 1.
In a filing with Bursa Malaysia today, Perak Corp said ATP has officially discontinued the licence agreement entered with DreamWorks Animation LLC on Jan 1, 2013 for the establishment and operation of DreamWorks' attractions within MAPS.
"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 the MAPS as soon as possible.
"MAPS has been soft opened on June 26, without the DreamWorks' attractions," it added.
Perak Corp noted that ATP will be working closely and potentially sign a mutual termination agreement with DreamWorks to ensure all outstanding obligations are fully met so that both parties exit the licence agreement amicably. This will include removing all DreamWorks' intellectual properties from the MAPS before the zone designated for the DreamWorks' attractions is open to public.
"The DreamWorks' attractions zone is now undergoing renovation process to remove all DreamWorks' intellectual properties and, upon complete removal, ATP intends to open the zone with or without any third party's intellectual property," it said.
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, which are classified as intangible assets, has a carrying value of RM17.461 million.
This amount, together with the related inventories and estimated DreamWorks' attractions development in progress cost of RM15.735 million, will be written off in the current financial year (FY18), said Perak Corp.
Perak Corp added that the board of directors is of the view that 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 visitors' attendance number, entertainment value and repeat visitors to the MAPS, which will then translate into higher revenue to the MAPS," it said.
ATP is a joint venture between Perak Corp and RSG Maps Sdn Bhd.
Shares in Perak Corp were untraded today. The stock last closed at 65 sen, bringing a market capitalisation of RM65 million.