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- The exercise was first announced in September last year, when the hospitality and property development group also unveiled plans to acquire a 2.26-acre plot of land in Kuala Lumpur’s Persiaran Dutamas area from a company linked to its executive chairman and major shareholder Datuk Seri Lee Hock Seng for RM80 million.
KUALA LUMPUR (Aug 13): Magma Group Bhd (KL:MAGMA), whose shares have risen over 77% year-to-date, has completed its RM379.81 million capital reduction exercise.
This follows the lodging of a sealed copy of the court order confirming the capital reduction with the Companies Commission of Malaysia on Wednesday, said the group, formerly known as Impiana Hotels Bhd, in a filing with Bursa Malaysia.
The exercise was first announced in September last year, when the hospitality and property development group also unveiled plans to acquire a 2.26-acre plot of land in Kuala Lumpur’s Persiaran Dutamas area from a company linked to its executive chairman and major shareholder Datuk Seri Lee Hock Seng for RM80 million.
The land has been approved for a mixed-use development comprising serviced apartments and commercial spaces.
The acquisition is deemed a related-party transaction as Lee controls 44% of Skyload Sdn Bhd through his 80% interest in Empire Solaris Sdn Bhd, which in turn owns 55% of Skyload. The remaining 45% in Skyload is held by former national badminton player Datuk Wira Lee Chong Wei, one of the company’s two directors. The other director is Magma’s managing director Datuk Seri Thomas Liang Chee Fong.
In April, Magma said its proposed acquisition of five parcels of land on Tioman Island for resort development lapsed following the expiry of conditions precedent in the sale and purchase agreements. The RM7.5 million deals involved three freehold parcels and two leasehold parcels owned by Impiana Tioman Sdn Bhd—a company controlled by the group’s former executive chairman Datuk Seri Ismail @ Farouk Abdullah.
Farouk has since ceased to be a substantial shareholder of Magma after disposing of 4.095 million shares, or a 0.24% stake, reducing his shareholding to 4.86% in Magma.
Magma also signed a partnership agreement with Nasdaq-listed Chagee in May to tap into Malaysia’s Chinese premium tea chain market.
Magma’s shares have been on an uptrend since March, hitting a high of 51 sen on July 11. At Wednesday’s close, the counter was down one sen, or 2.5%, to 39 sen, valuing the group at RM655.62 million. Over the past year, the stock has surged more than 85%.
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