KUALA LUMPUR (Feb 19): Atlan Holdings Bhd (KL:ATLAN) said its indirect subsidiary, Selasih Ekslusif Sdn Bhd, has ceased its duty-free business operations at Berjaya Waterfront Johor Bahru and is terminating the tenancy agreement with the landlord.

Atlan said Selasih decided to cease operations at the duty-free complex after failing to secure a renewal of its business licence from the Johor Bahru City Council despite repeated attempts, and has given notice to terminate the tenancy agreement signed with Berjaya Waterfront Sdn Bhd, a unit of Berjaya Assets Bhd (KL:BJASSET), in March 2013.

Selasih is a subsidiary of Singapore-listed Duty Free International Ltd (DFIL), which operates duty-free retail outlets selling alcohol, chocolates, tobacco products, perfumery and cosmetics. DFIL is 75.53%-owned by Atlan.

Selasih’s tenancy termination and cessation of operations were announced by DFIL in a filing to the Singapore Exchange, with Atlan making a corresponding disclosure on Bursa Malaysia.

For the financial year ended Feb 28, 2025, Selasih contributed approximately 38.6% and 4.6% to DFIL’s revenue and profit after tax respectively.

Atlan said Selasih had attempted to negotiate a mutually agreeable termination with Berjaya Waterfront but failed to reach an agreement.

Berjaya Waterfront has yet to respond to the termination notice, said Atlan.

It said the termination may result in DFIL recording a one-off exceptional net gain after tax of about RM17 million, arising mainly from the derecognition of the lease, offset by costs related to the cessation of operations, including asset write-offs, inventory write-downs and staff retrenchment expenses. The figures, however, are still being reviewed and quantified, it added.

Shares of Atlan closed down four sen or 1.43% at RM2.75 on Thursday, giving the group a market capitalisation of RM697.54 million.