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Magma and KLCC Holdings Jointly Announce Strategic Divestment of Impiana KLCC Hotel

KUALA LUMPUR, MY / ACCESS Newswire / October 11, 2025 / Magma Group Berhad ("Magma" or the "Company"), a Malaysian conglomerate and investment holding entity rooted in hospitality, with a growing presence in property development and related sectors, today announced that its wholly-owned subsidiary, Astaka Mekar Sdn. Bhd. ("AMSB"), together with KLCC (Holdings) Sdn. Bhd. ("KLCC Holdings"), has entered into a Share Sale Agreement ("SSA") with Harum Aspirasi Sdn. Bhd. ("HASB") for the proposed disposal of the entire equity interests in Heritage Lane Sdn. Bhd. ("HLSB"), the registered proprietor and beneficial owner of the Impiana KLCC Hotel in Kuala Lumpur.

Magma Group Berhad

Under the SSA, KLCC Holdings will dispose of its 80% equity interest and AMSB its 20% interest, representing a total estimated disposal consideration of approximately RM315.0 million, exceeding the market valuation of RM300.0 million, which also reflects strong investor confidence in the asset. The transaction reflects a joint strategic decision between KLCC Holdings and Magma to optimise portfolio value while positioning the hotel for continued success under new ownership.

Dato' Sri Thomas Liang Chee Fong, Group Managing Director cum Group Chief Executive Officer of Magma Group Berhad commented,"Hospitality has always been at the heart of Magma, and Impiana KLCC stands as a proud part of our journey. This joint divestment with KLCC Holdings represents a strategic step to unlock value and enable the asset's next phase of growth with a strong new partner. The proceeds from this transaction will further strengthen our balance sheet and support the Group's continued expansion, building on our hospitality foundation as we expand into complementary lifestyle and property ventures."

The estimated disposal consideration of RM63.0 million attributable to Magma's 20% stake will be fully settled in cash upon completion, enabling the Group to strengthen its balance sheet and liquidity position. The funds will primarily be utilised for loan repayments, strategic investments in existing businesses, working capital and related expenses, enhancing the Group's liquidity and financial flexibility.

Following the completion of the Proposed Disposal, HLSB will cease to be an associate company of Magma. The transaction is expected to generate a pro forma gain for the Group, further reinforcing its financial standing. The proposed disposal is subject to shareholders' approval at an upcoming extraordinary general meeting and is targeted for completion by the first quarter of 2026.

###

ABOUT MAGMA GROUP BERHAD

Magma Group Berhad is a Malaysian conglomerate and investment holding entity rooted in hospitality, with a growing presence in property development and related sectors. The Group's core activities include hotel and resort operations, property investment, hotel development, and the provision of professional management services to the hospitality industry. Its key subsidiaries, Magma Hospitality Management Sdn. Bhd. and Magma Property Sdn. Bhd., anchor a diversified portfolio that reinforces Magma's position as a leading player in Malaysia's hospitality and property landscape, while also expanding into lifestyle retail through its joint venture with CHAGEE Malaysia.

For more information, visit https://www.magma.my/.

Issued By: Swan Consultancy Sdn. Bhd. on behalf of Magma Group Berhad

For more information, please contact:

Jazzmin Wan
Email: j.wan@swanconsultancy.biz

Xinyi Ching
Email: x.ching@swanconsultancy.biz

SOURCE: Magma Group Berhad


View the original press release on ACCESS Newswire

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