Datuk Sri Thomas Liang Chee Fong
KUALA LUMPUR: Magma Group Bhd
has received the green light from shareholders at its extraordinary general meeting for its proposed issuance of redeemable convertible notes (RCN) aimed at raising up to RM100mil.
It said the move is expected to strengthen Magma's financial standing and support the company's long-term growth objectives across its core business segments.
According to Magma, the funds raised from the RCN issuance will be allocated towards bolstering the company's working capital requirements, modernising hotel facilities through refurbishment and upgrades, expanding business ventures, and repaying existing financing facilities.
This exercise forms a critical part of Magma’s broader strategy to enhance its operational capabilities while driving sustainable growth in its core hospitality and hotel management segments.
"The approval of the RCN fund-raising exercise provides us with the necessary financial resources to strengthen our balance sheet, enhance our hotel offerings, and capitalise on growth opportunities within the recovering tourism market.
"We remain committed to delivering value to our shareholders and positioning Magma for sustainable growth," said group managing director Datuk Sri Thomas Liang Chee Fong.
Magma said it is confident efforts to optimise its capital structure will enable it to enhance its competitive edge in the hospitality industry, especially as the Company continues to leverage strong market demand for travel and tourism.
