Magma Group Berhad (“Magma” or the “Company”), a dynamic hospitality and investment holding group, wishes to clarify that both Sale and Purchase Agreements (“SPA 1” and “SPA 2”) related to previously proposed acquisitions have lapsed on 31 December 2024.
The announcement was made on 11 April 2025 following the conclusion of the Company’s internal governance process, legal review, and confirmation from all relevant parties involved in the agreements.
The deals, valued at a combined RM7.500 million, involved the proposed acquisition of three freehold parcels and two leasehold parcels of land located on Tioman Island from Impiana Tioman Sdn. Bhd.
These acquisitions were originally intended to be satisfied via the issuance of new shares by Magma.
After a comprehensive review process, the Board confirms that the conditions precedent outlined in both SPA 1 and SPA 2 were not fulfilled within the stipulated timeframe, rendering the agreements lapsed and no longer enforceable.
Importantly, Magma affirms that the lapse of these SPAs does not have any material financial or legal impact on the Company.
The time taken to formalise the lapse was necessary to ensure proper due diligence, including internal deliberations and legal confirmations. These steps reflect Magma’s commitment to sound corporate governance and ensuring compliance with Bursa Malaysia’s Listing Requirements prior to formal disclosures.
Dato’ Sri Thomas Liang Chee Fong, Group Managing Director of Magma Group Berhad commented, “We take regulatory compliance and governance very seriously. This clarification reflects our commitment to transparency and stakeholder accountability. We are continuously improving internal processes to ensure timely and accurate disclosures moving forward.”
The Company remains committed to its long-term strategic roadmap and recently received strong shareholder backing at its Extraordinary General Meeting (“EGM”) held on 21 March 2025.
Shareholders approved a series of forward-looking corporate proposals, including the acquisition of a strategically located parcel of leasehold land in Dutamas, Kuala Lumpur, a capital reduction exercise, and amendments to the Company’s Constitution.
These proposals reflect a significant step forward in repositioning Magma for growth in the hospitality and property sectors.
With the SPA matters now concluded and new mandates secured at the recent EGM, Magma is well-positioned to focus on its core operations and capitalise on fresh opportunities aligned with its revitalised strategic vision.
The Board remains committed to enhancing shareholder value and reinforcing Magma’s standing as a trusted and forward-driven organisation.
For more information, visit https://www.magma.my/.
