KUALA LUMPUR, 1 September 2026 — Magma Group Berhad (“Magma” or the “Group”), a Main Market-listed hospitality, property and lifestyle group, has completed the disposal of its entire 20% equity interest in Heritage Lane Sdn Bhd (“Heritage Lane”), the owner of Impiana KLCC Hotel, for a total cash consideration of RM63.0 million.
The disposal was undertaken by Astaka Mekar Sdn Bhd, a wholly owned subsidiary of Magma, of its entire 20% equity interest in Heritage Lane to Harum Aspirasi Sdn Bhd. The balance disposal consideration has been fully satisfied by the purchaser in accordance with the terms and conditions of the Share Sale Agreement, marking the completion of the transaction.
The disposal allows the Group to realise the value of its non-core investment in Heritage Lane. The proceeds from the disposal are intended to be utilised for the repayment of loans, further business expansion that may enhance and strengthen the Company’s financial position and support its long-term growth.
As previously disclosed, Magma intends to allocate RM45.0 million of the proceeds towards the repayment of existing borrowings, including a term loan and factoring facility, with estimated annual interest savings of approximately RM3.9 million. A further RM12.0 million is intended to support investment in the Group’s existing businesses to enhance operational capacity, expand market reach and strengthen its recurring income base.
Group Managing Director and Group Chief Executive Officer Dato’ Sri Thomas Liang Chee Fong said the completion of the disposal represents an important step in the Group’s ongoing efforts to enhance its financial flexibility and sharpen its focus on its strategic priorities.
“This transaction unlocks value from a non-core investment while enabling us to reduce borrowings and financing costs. It also gives Magma greater capacity to invest in our core businesses and execute our growth strategy with greater financial discipline. We remain focused on the disciplined allocation of capital and on directing our resources towards businesses and opportunities that support Magma’s longer-term growth.”
Magma will continue to focus on the development and growth of its core businesses, including its hospitality operations and property development activities, while pursuing opportunities that are aligned with the Group’s long-term strategy and objective of creating sustainable value for shareholders.
Positioned for The Next Phase of Growth
With the disposal now completed, Magma remains focused on advancing its strategic priorities and driving growth across its business platforms.
The Group will maintain prudent financial and capital management as it progresses key initiatives, including the development of Wolo Hotel & Residences, Mont Kiara KL, and strengthening its broader hospitality and business portfolio.
Dato’ Sri Thomas added:
“As Magma moves into its next phase of growth, our priority remains clear — to build a stronger and more focused platform while maintaining financial discipline and pursuing opportunities that can deliver sustainable long-term value for our shareholders.”
