Magma Proposes Capital Reduction, Land Acquisition, Amendment Of Group's Constitution

KUALA LUMPUR, Sept 24 (Bernama) -- Magma Group Bhd (formerly known as Impiana Hotels Bhd) has proposed to undertake a reduction of its share capital pursuant to Section 116 of the Companies Act, 2016. 

In a filing with Bursa Malaysia today, the company said the proposed capital reduction would enable it to rationalise its statement of financial position by eliminating its accumulated losses. 

It would also more accurately reflect the value of the underlying assets and the financial position of the company, it said. 

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Meanwhile, the group is also proposing to acquire a leasehold land measuring 0.91 hectares in Persiaran Dutamas, Kuala Lumpur from Skyload Express Sdn Bhd for RM80 million.

The acquisition will be done via Magma Kiara Sdn Bhd, a wholly-owned subsidiary of Magma Property Sdn Bhd, which in turn is a wholly-owned subsidiary of the group.

The total purchase consideration would be satisfied via combination of cash payment of RM8 million, the issuance of 120 million consideration shares at an issue price of RM0.2024 per share, and the issuance of 47,712,000 new redeemable non-convertible preference shares (RPS) at an issue price of RM1.00 per RPS.

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"The proposed acquisition is part of the group’s ongoing effort to expand its property development business by acquiring additional land banks at strategic locations with growth potential for future development," it said. 

Magma Group has also proposed amendments to its constitution to facilitate the issuance of the RPS for the acquisition. 

The said land has been earmarked for the proposed development of two blocks of 34-storey buildings, comprising 22-storeys of service apartment units, one-level basement car park, a two-level commercial area, eight-levels of car parking bays, one-and-a-half-storey facilities area, a rooftop garden and a single-storey community hall by Dewan Bandaraya Kuala Lumpur. 

The gross development cost of the land is RM249.60 million and the proposed development is expected to generate an estimated gross development value (GDV) of RM439.86 million.

Magma Group added that the expected commencement and completion period of the proposed development has yet to be determined at this juncture.

Barring any unforeseen circumstances and subject to receipt of all required approvals, the board expects the proposals to be completed by the first quarter of 2025.

-- BERNAMA