Magma Group Bhd’s shareholders have approved the sale of the group’s entire 20% equity interest in Heritage Lane Sdn Bhd (HLSB) for RM63 million at an EGM held on Feb 9.
The disposal, executed via Magma’s wholly-owned subsidiary Astaka Mekar Sdn Bhd, involves the sale of one million ordinary shares and 1,201 preference shares, representing a 22.33% premium over the adjusted net asset value.
Upon completion, Magma expects a pro forma gain of approximately RM20.06 million and improved basic loss per share from 4.7 sen to 2.62 sen.
Group Managing Director and CEO Datuk Seri Thomas Liang Chee Fong said proceeds from the sale will be deployed strategically, with RM45 million earmarked to repay existing term loans and factoring facilities, generating estimated annual interest savings of RM3.9 million.
“Another RM12 million will be reinvested in the group’s existing businesses, RM4.17 million allocated for general working capital and RM1.83 million to cover disposal-related expenses,” he said.
Overall, he emphasised that the transaction strengthens Magma’s balance sheet, enhances financial flexibility and underscores the group’s commitment to disciplined capital management while supporting its hospitality and property ventures.
Completion is expected within three months, pending regulatory approvals.
