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Monday, January 16, 2017

Only World Group falls 3.49% on plan to close outlets

KUALA LUMPUR (Jan 16): Only World Group Holdings Bhd (OWG) shares fell 3.49% this morning after the company said it will close 14 food, family attraction and retail outlets in First World Hotel, Genting Highlands, to facilitate ongoing redevelopment and transformation of Resorts World Genting beginning Feb 12.

At 9.21am, OWG lost 8 sen to RM2.21 with 747,500 shares traded.

OWG expects a financial impact to the group because the affected outlets contribute 39% to 59% of the total revenue and profit before tax for the financial year ended June 30, 2016.

The group said the closure would not have any operational impact on the other outlets of the company and its subsidiaries, and the landlord would try to find a suitable space for relocation in the newer areas of Resorts World.

In the meantime, the group said the financial impact would be mitigated by the opening of two new food service outlets at Sky Avenue in Resorts World, and the launch of The Top, Komtar in Penang, in December last year.

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