Magma Group completes estimated RM63m sale of 20% stake in Impiana KLCC Hotel owner

Magma Group Bhd has completed the disposal of its 20% interest in Heritage Lane Sdn Bhd, owner of the Impiana KLCC Hotel in Kuala Lumpur, for an estimated RM63 million. The transaction values the entire hotel owner at RM315 million. Proceeds will be used for debt repayment and reinvestment.

PETALING JAYA (Sept 1): Magma Group Bhd has completed the disposal of its entire 20% interest in Heritage Lane Sdn Bhd (HLSB), the owner of Impiana KLCC Hotel in Kuala Lumpur, for an estimated RM63 million in cash.

The group said in a Bursa Malaysia filing on Tuesday (Sept 1) that the balance disposal consideration had been fully satisfied by purchaser Harum Aspirasi Sdn Bhd to the vendors on the same day, completing the transaction on the same day.

Magma’s interest was held through its wholly owned subsidiary Astaka Mekar Sdn Bhd (AMSB). The deal formed part of the sale of HLSB’s entire equity interest to Harum Aspirasi, with KLCC Holdings Sdn Bhd disposing of the remaining 80% stake. The aggregate estimated consideration for 100% of HLSB was RM315 million.

Under the share sale agreement, AMSB’s estimated RM63 million entitlement comprised an RM1.26 million earnest deposit, RM5.04 million balance deposit and RM56.7 million balance disposal consideration. The final consideration remains subject to post-completion adjustments based on HLSB’s final audited balance sheet and profit-and-loss accounts at completion. Any surplus or shortfall will be paid to or by the vendors according to their respective shareholding proportions.

The sale and purchase agreement became unconditional on June 11 after the Ministry of Economy approval condition was fulfilled, Magma said in an earlier filing.

HLSB is the registered proprietor and beneficial owner of the four-star, 519-room Impiana KLCC Hotel at Jalan Pinang. The hotel sits on three freehold lots with a combined land area of about 67,298 sq ft. The hotel had an audited net book value of RM205.97 million as at Dec 31, 2024, while Rahim & Co International Sdn Bhd assessed its market value at RM300 million as at Oct 8, 2025 on a going-concern basis.

Magma had said the disposal would allow it to monetise what it regarded as a non-core and passive investment, as its 20% stake gave the group limited control over HLSB’s strategic direction and operational decisions. It had also cited strengthening its financial position and liquidity, as well as reallocating capital towards businesses offering higher growth potential and returns.

Magma previously earmarked RM45 million of the estimated proceeds for repayment of borrowings, RM12 million for investment in its existing businesses and RM4.17 million for working capital, with RM1.83 million set aside for estimated transaction expenses. The circular estimated a pro forma gain of about RM20.06 million from the disposal, although the actual gain or loss can only be determined after completion and finalisation of the actual disposal consideration.

Prior to completion, Impiana KLCC Hotel was operated by Magma Hospitality Management Sdn Bhd, a wholly owned subsidiary of Magma, under a hotel-management agreement extended to Nov 17, 2026. The agreement carries a three-month termination notice, while Magma had said Harum Aspirasi would have sole discretion following completion on whether to maintain, extend or terminate it.