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 the successful completion of its RM379,207,984.00 capital reduction exercise, a strategic move to strengthen its balance sheet and enhance financial flexibility for future expansion.
The completion follows the lodgement of the High Court of Malaya’s sealed order with the Companies Commission of Malaysia on 13 August 2025, confirming the Special Resolution passed by shareholders at the Extraordinary General Meeting (“EGM”) on 21 March 2025.
Through this exercise, Magma’s issued share capital has been reduced from RM669,149,623.78 to RM289,941,639.78 through the cancellation of RM379,207,984.00. The number of shares in issue remains unchanged at 1,681,086,245, with no impact on shareholders’ equity ownership.
Dato’ Sri Thomas Liang Chee Fong, Group Managing Director cum Group Chief Executive Officer of Magma Group Berhad said,
“This capital reduction marks an important step in our transformation journey. 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.”
The capital reduction does not involve the cancellation of any shares or changes to the shareholding structure. It improves the Company’s balance sheet efficiency by reducing its capital base, creating a leaner structure that enhances key financial ratios.
Most importantly, it provides Magma with the flexibility to channel resources towards expansion initiatives and strategic investments that align with the Group’s long-term growth objectives.
With the completion of this exercise, Magma is poised to execute its growth agenda, focusing on expanding its lifestyle F&B footprint, enhancing its hospitality portfolio, and unlocking value from its property assets; reinforcing its position as a dynamic player in Malaysia’s hospitality, property development, and F&B sectors.
For more information, visit https://www.magma.my/.
