The theme park operator expects the compensation sum to have a material positive impact on its earnings for the current financial year
[SINGAPORE] Theme park operator Sim Leisure Group has reached a final settlement with Bandar Malaysia over a terminated theme park agreement, in a deal that is expected to have a “material positive impact” on the company’s earnings for the financial year ending Dec 31, 2025.
In a bourse statement on Tuesday (Sep 9) evening, the Catalist-listed company outlined the key terms of the settlement.
Sim Leisure will receive an undisclosed “compensation sum” to be paid in full on or before Oct 30.
In return, it will hand over the project site by Sep 15. The agreement also includes a waiver for any outstanding payments owed by Sim Leisure’s subsidiary to the owner.
The settlement resolves a dispute stemming from an agreement signed in November 2023 by both parties to develop a theme park in Kuala Lumpur. Over a year later, Sim Leisure received a termination notice from Bandar Malaysia, and subsequently served a letter of demand for breach of agreement earlier this year.
The company stated that the receipt of the compensation is expected to have a material positive impact on its earnings per share and on the consolidated net tangible assets per share for the current financial year.
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Sim Leisure owns and operates the Escape outdoor adventure park in Penang, the Escape Challenge indoor park at Paradigm Mall in Petaling Jaya, and KidZania Kuala Lumpur.
Shares of Sim Leisure closed flat at S$0.635 on Tuesday, before the announcement.
