Magma Group Berhad (“Magma” or the “Company”), a dynamic hospitality and investment holding group, is pleased to announce that its shareholders have approved all resolutions tabled at the Extraordinary General Meeting (“EGM”) held today at Impiana KLCC Hotel, Kuala Lumpur. This marks a significant milestone in the Company’s growth strategy, paving the way for its expansion in the property and hospitality sectors while strengthening its financial position.
The EGM saw the successful approval of three key corporate proposals, including the Proposed Acquisition of a Leasehold Land in Dutamas, Kuala Lumpur, the Proposed Capital Reduction, and Proposed Amendments to the Company’s Constitution. These initiatives collectively reinforce Magma’s commitment to value creation and sustainable growth.
Shareholders have approved the acquisition of a 2.26-acre leasehold land in Persiaran Dutamas, Kuala Lumpur, for a total purchase consideration of RM80.0 million, which will be satisfied through a combination of RM8.0 million in cash, the issuance of 120.0 million new ordinary shares in Magma at an issue price of RM0.2024 per share, and 47.712 million Redeemable Non-Convertible Preference Shares (“RPS”) at an issue price of RM1.00 per RPS. This strategic acquisition will enhance Magma’s property development portfolio and unlock future growth opportunities.
The land is earmarked for a hospitality-infused residential development. Unlike conventional projects, this development aims to deliver a seamless and premium living experience that mergers the best of both hospitality and residential development to the Malaysian market. Upon completion, operations and service management for the serviced apartments will be overseen by Magma Hospitality Management Sdn. Bhd., a wholly-owned subsidiary of the Group with deep expertise in hotel operations. This ensures a consistent delivery of quality, while bringing a fresh and differentiated concept to the local property scene.
In addition, the shareholders approved the Proposed Capital Reduction, which entails a reduction of RM379.2 million from Magma’s issued share capital. The corresponding credit from this reduction will be utilised to offset the Company’s accumulated losses, providing a clean slate for future earnings and improved financial flexibility. The exercise will have no impact on shareholders’ equity holdings but is expected to strengthen the Company’s capital structure.
Furthermore, the Proposed Amendments to the Constitution of Magma were also approved to facilitate the issuance of RPS under the Proposed Acquisition. These amendments are necessary to align the Company’s governance framework with its corporate restructuring and fund-raising activities.
Dato’ Sri Thomas Liang Chee Fong, Group Managing Director of Magma Group Berhad expressed his appreciation for the shareholders’ strong support, stating: “The successful conclusion of our EGM and the approval of these resolutions mark a significant step forward for Magma. The acquisition of prime land in Dutamas and the capital reduction exercise will enable us to optimise our financial position while positioning the Company for future expansion. We are committed to executing our growth plans strategically, ensuring long-term value for our shareholders.”
The approval of these corporate proposals aligns with Magma’s broader vision of strengthening its business foundation, expanding its property and hospitality footprint, and reinforcing its balance sheet. As the Company moves forward, it remains focused on leveraging emerging opportunities in the recovering property and tourism sectors.
With these approvals in place, Magma Group Berhad is poised to execute its strategic initiatives and enhance its competitive position, driving sustainable growth and long-term value creation for its stakeholders.
