3 days ago
- Business
- New Straits Times
Magma completes RM379mil capital reduction, eyes long-term growth
KUALA LUMPUR: Magma Group Bhd has completed its RM379.21 million capital reduction exercise, a move aimed at strengthening its balance sheet and boosting financial flexibility for long-term growth.
This follows a special resolution passed at an extraordinary general meeting on March 21, with a High Court sealed order lodged with the Companies Commission on Aug 13.
Through the exercise, Magma's issued share capital was reduced from RM669.15 million to RM289.94 million. The number of shares in issue remains at 1.68 billion, with no impact on shareholders' equity ownership.
"This capital reduction marks an important step in our transformation journey," group managing director and group chief executive officer Datuk Seri Thomas Liang Chee Fong said in a statement.
"With a stronger balance sheet, we can accelerate our CHAGEE joint venture rollout, unlock value from our Mont Kiara landbank, and pursue high-potential opportunities in hospitality and property, all with the goal of delivering sustainable returns to our shareholders."
Magma said the exercise does not involve cancelling any shares or changing the shareholding structure. Instead, it streamlines the company's capital base, improves balance sheet efficiency, and enhances key financial ratios.
Following the completion, the group aims to focus on expanding its lifestyle food and beverage business, enhancing its hospitality portfolio and unlocking value from its property assets
