Lee Chong Wei among Magma's newly emerged substantial shareholders after land deal

• This follows the allotment of shares by Magma to fund the RM80 million acquisition of land in the Persiaran Dutamas area of Kuala Lumpur from Skyload Express Sdn Bhd — a company linked to Magma’s executive chairman and major shareholder Datuk Seri Lee Hock Seng.

KUALA LUMPUR (April 24): Magma Group Bhd (KL:MAGMA), which is primarily in hotel management and property development, announced the emergence of several new substantial shareholders on Thursday, including former national badminton player Datuk Wira Lee Chong Wei.

This follows the allotment of shares by Magma to fund the RM80 million acquisition of land in the Persiaran Dutamas area of Kuala Lumpur from Skyload Express Sdn Bhd — a company linked to Magma’s executive chairman and major shareholder Datuk Seri Lee Hock Seng. The transaction was approved by shareholders at a recent extraordinary general meeting (EGM).

Following the allotment, Skyload Express Sdn Bhd — 55%-owned by Empire Solaris Sdn Bhd and 45% by Chong Wei — holds 120 million shares or a 7.7% direct stake in Magma. Empire Solaris is 80%-owned by Magma’s major shareholder Datuk Lee Hock Seng; the balance 20% is held by Lee Kim Hai.

This raises Chong Wei's indirect stake in Magma by 7.7% to 8.15%. He also holds a direct 1.7% stake in Magma.

The allotment also increases Hock Seng's total interest in Magma to 19.42%, comprising a direct 7.75% stake and an indirect 11.67%, while Kim Hai gains an indirect 7.7% stake.

Magma on September 24 last year announced that its wholly-owned Magma Kiara Sdn Bhd had entered into a conditional sale and purchase agreement (SPA) with Skyload Express to acquire the land, which has received approval for a mixed-use development project that includes serviced apartments and commercial spaces.

The deal will be funded by RM8 million in cash, the issuance of 120 million new ordinary Magma shares, and redeemable non-convertible preference shares (RPS).

The SPA became unconditional on March 25, following the fulfillment of all conditions precedent, according to Magma’s latest filing with the stock exchange.

In a statement Thursday, Magma managing director Datuk Seri Thomas Liang Chee Fong said the entry of new substantial shareholders marks a pivotal moment for the group and reinforces their shared vision for long-term value creation.

“We are confident that their support will further accelerate our efforts in strengthening Magma’s fundamentals across hospitality and property ventures.”

Magma's shares closed 1.5 sen or 4% lower at 36.5 sen on Thursday, valuing the company at RM525.3 million.

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