KUALA LUMPUR: Magma Group Bhd
's wholly-owned subsidiary Astaka Mekar Sdn Bhd and KLCC (Holdings) Sdn Bhd will dispose of their combined 100% equity interest in Heritage Lane Sdn Bhd, the holding company of Impiana KLCC Hotel, to Harum Aspirasi Sdn Bhd for RM315mil cash.
The group said in a bourse filing that Astaka Mekar, which has a 20% stake in Heritage Lane, will be entitled to about RM63mil of the disposal consideration.
Impiana KLCC Hotel, which comprises a 15-storey hotel as well as a 25 storey tower, is erected on 6.25 million sqm of land. The property is currently operated by Magma Hospitality Management Sdn Bhd, a wholly-owned subsidiary of Magma.
According to Magma, the 20% estimated disposal consideration of RM63mil represents a 22.33% premium over the RM51.5mil adjusted net asset value of 20% equity interest in Heritage Lane.
The gross proceeds from the sale are expected to go towards repaying borrowings (RM45mil), investing in Magma's existing businesses (RM12mil), working capital (RM4.12mil) and expenses for the proposed disposal (RM1.88mil).
The group said the proposed disposal will allow it to reallocate its financial resources more efficiently to other business segments, strengthen its financial position and liquidity, as well as move funds to higher growth potential areas.
The proposed disposal is expected to be completed by the first quarter of 2026.
