WTK Holdings takes a RM51mil hit – Business News


KUALA LUMPUR: WTK Holdings Bhd said the winding up of wholly owned unit Alanya Marine Ventures Sdn Bhd (AMV) to result in a one off RM51mil loss for the company.

“The company is of the view the total impact as mentioned above should be accounted in WTK group’s financial results for fourth quarter ended Dec 31, 2017,’ it said in a filing with Bursa Malaysia today.

This is due to the uncontested winding-up petition filed on Dec 18, 2017 and served on Dec 22, 2017 to AMV resulting in an imminent loss of control on the hearing date set on Feb 22.

“On the said date, the court had ordered AMV to be wound-up and appointed a liquidator thus confirming the total loss of control of AMV,” it said.

The company added that AMV accounts would only be deconsolidated from WTK group in the first quarter ending March 31, 2018.

The accounts of AMV would be prepared on a basis other than a going concern in the last quarter of 2017.

Hence, all its investments and receivables would be assessed for impairment, which would also be recognised in WTK group’s consolidated account.

Arising thereof, WTK group would record an impairment loss of approximately RM136mil.

Upon the court winding-up order, as well as the appointment of the liquidator on Feb 22, AMV’s accounts would be deconsolidated from WTK group in the first quarter of 2018 and would realised a gain from deconsolidation of AMV.

Arising thereof, WTK Group would record a gain on deconsolidation of approximately RM85mil.

“Please be advised that the aforesaid profit guidance statement is based on preliminary assessment by the company on currently available information pending the finalisation of WTK group’s financial results,” it said.

Read more : thestar

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