Perak Corp to write off RM33m on DreamWorks’ exit

PETALING JAYA: The Movie Animation Park Studios (MAPS) in Meru, Ipoh has faced a major setback after Perak Corp announced that its main attraction, DreamWorks Animation, will pull out from the theme park.

The move will lead to Perak Corp having to write off a total of RM33.2 million in the current financial year, according to its filing with the stock exchange.

Perak Corp’s indirect 51%-owned subsidiary Animation Theme Park Sdn Bhd (ATP) officially discontinued the licence agreement dated Jan 1, 2013 entered with DreamWorks Animation LLC or the establishment and operation of DreamWorks’ attractions within the MAPS, effective Aug 1, 2018.

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 RM17.46 million.

This amount, together with the related inventories and estimated DreamWorks’ attractions development in progress cost of RM15.73 million, will be written off in the current financial year.

Perak Corp said the agreement termination is in the best interest of ATP and the group will ensure that it can continue to operate as a going concern.

“The full opening of MAPS in the near future is expected to increase visitors’ attendance number, entertainment value and repeat visitors to MAPS which will then translate into higher revenue to it (MAPS).”

DreamWorks was slated to be one of the main selling points for MAPS, which opened to the public on June 26, 2017 without the DreamWorks’ attractions.

Perak Corp Bhd said the termination was because the two parties were not able to open the DreamWorks’ attractions to the public by Aug 1.

“ATP has 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 MAPS as soon as possible.”

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 could 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.”