Magma Group Berhad (Magma) has announced that its shareholders have approved all proposals discussed at the Extraordinary General Meeting (EGM) held recently at Impiana KLCC Hotel, Kuala Lumpur. This is an important step for the Company’s growth, helping its expansion in property and hospitality sectors while strengthening its finances.
During the EGM, shareholders approved three main proposals: the Proposed Acquisition of Leasehold Land in Dutamas, Kuala Lumpur, the Proposed Capital Reduction, and Proposed Amendments to the Company’s Constitution. These steps show Magma’s dedication to creating value and supporting sustainable growth.
Shareholders approved the purchase of a 2.26-acre leasehold land in Persiaran Dutamas, Kuala Lumpur, for RM80.0 million. This will be paid using RM8.0 million in cash, 120.0 million new ordinary shares in Magma at RM0.2024 per share, and 47.712 million Redeemable Non-Convertible Preference Shares (RPS) at RM1.00 per RPS. This acquisition will boost Magma’s property development and open up new growth opportunities.
The land is planned for a hospitality-infused residential development. Unlike standard projects, this aims to provide a smooth and high-quality living experience that blends hospitality and residential development in the Malaysian market. After completion, the service management for the serviced apartments will be handled by Magma Hospitality Management Sdn. Bhd., a fully-owned subsidiary of the Group that specializes in hotel operations. This ensures consistent quality and introduces a unique concept to the local property market.
Additionally, shareholders approved the Proposed Capital Reduction, which will lower Magma’s issued share capital by RM379.2 million. This reduction will help wipe out the Company’s losses, giving it a fresh start for future profits and better financial flexibility. This change will not affect shareholders’ equity but is expected to strengthen the Company’s financial position.
Lastly, the Proposed Amendments to the Constitution of Magma were also approved to support the issuance of RPS linked to the Proposed Acquisition. These changes are needed to ensure the Company’s governance matches its restructuring and fund-raising efforts.
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.