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- The sale helps Magma unlock value from a non-core asset, reduce debt, and focus on higher-growth areas.
KUALA LUMPUR (Oct 10): Magma Group Bhd (KL:MAGMA) and KLCC Holdings Sdn Bhd are selling the 519-room Impiana KLCC hotel for RM315 million to Harum Aspirasi, mostly owned by the Valiram family, which runs a luxury retail group.
The announcement confirmed The Edge report in February this year that the hotel was up for sale.
Magma is selling its 20% stake in Heritage Lane Sdn Bhd (which owns the hotel), while KLCC Holdings owns 80%. The sale price is above the RM300 million market value, showing strong investor confidence, the two selling companies said in a joint statement.
Magma will get RM63 million in cash from the sale of its stake. It plans to use about RM45 million to repay loans, support its businesses, and cover costs. This loan repayment will save about RM3.9 million in interest and improve Magma’s debt level.
The sale helps Magma unlock value from a non-core asset, reduce debt, and focus on higher-growth areas. After the sale, Heritage Lane will no longer be linked to Magma.
The deal is expected to give Magma a RM20 million gain, needs shareholder approval, and should be completed by the first quarter of 2026.
Magma’s share price closed unchanged on Friday at 31 sen a share, valuing the company at RM521.14 million. Year to date, the company’s stock is up 40.91%.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
