KUALA LUMPUR, 5th March 2026 – Magma Group Berhad (“Magma” or the “Group”), a diversified investment holding group with interests in hospitality, property development and lifestyle retail, today announced that it has entered into a Heads of Agreement (“HOA”) in relation to the proposed acquisition of The Luma Hotel in Kota Kinabalu, Sabah for a total purchase consideration of RM60.90 million (“Proposed Transactions”).
The Proposed Transactions will be undertaken via Magma Avenue Sdn. Bhd., a wholly-owned subsidiary of the Company, and comprises the acquisition of 100% equity interest in HH Home Hotel Sdn. Bhd., the owner and operator of The Luma Hotel, together with four contiguous buildings comprising 40 parcels of commercial units located at Sutera Avenue, where the hotel currently operates.
The purchase consideration of RM60.90 million was determined on a willing-buyer, willing-seller basis and remains subject to independent valuation and due diligence. The consideration is proposed to be satisfied through a combination of bank borrowings and the issuance of new ordinary shares in Magma at an issue price of 33 sen apiece, representing the five-day volume-weighted average price (VWAP) immediately preceding the date of the HOA.
Approximately 91.7 million new shares are expected to be issued, representing approximately 5.5% of the Company’s enlarged issued share capital. Any adjustments to the purchase consideration will be made through adjustments to the cash portion.
The Proposed Transactions are subject to customary conditions precedent, including completion of legal, financial, and operational due diligence, independent valuations, approval of Magma’s shareholders for the acquisition and issuance of the new shares, and approval from Bursa Malaysia Securities Berhad for the listing and quotation of the shares to be issued.
Magma Group Managing Director cum Group Chief Executive Officer Dato’ Sri Thomas Liang Chee Fong said
“The proposed acquisition of The Luma Hotel and its underlying properties represents a strategic expansion of our hospitality footprint, particularly in Sabah, in line with the Visit Malaysia 2026 campaign and continued domestic tourism growth under the Cuti-Cuti Malaysia initiative. The Luma Hotel, as a member of Design Hotels and part of the Marriott Bonvoy global network, provides international brand reach and distribution strength. By securing both the operating platform and the real estate assets, we reinforce our recurring income base while strengthening the Group’s asset-backed position. This transaction aligns with our long-term strategy of disciplined growth and value creation.”
The Proposed Transactions are aligned with the Group’s strategy of expanding its hospitality portfolio through asset-backed acquisitions and operational integration. Subject to the fulfilment of the agreed conditions precedent, the acquisition is expected to strengthen recurring income contribution and support the Group’s long-term growth objectives.
