KUALA LUMPUR, Sept 25 — Magma Group Berhad (formerly known as Impiana Hotels Berhad) is set to acquire a 2.26-acre leasehold land in Dutamas, Kuala Lumpur, for RM80 million from Datuk Lee Chong Wei through his 45 per cent stake in Skyload Express Sdn Bhd, which co-owns the property with Empire Solaris Sdn Bhd.

Empire Solaris holds the remaining 55 per cent of Skyload and is 80 per cent controlled by Magma’s major shareholder and deputy executive chairman, Datuk Seri Lee Hock Seng.

In a filing with Bursa Malaysia yesterday, Magma detailed that the funding for the acquisition will consist of RM8 million in cash, 120 million Magma shares valued at RM24.29 million, and 47.7 million new redeemable non-convertible preference shares (RPS) worth RM47.71 million.

The purchase price reflects a 3.61 per cent discount compared to the appraised land value of RM83 million.

As reported in The Edge, post-acquisition, assuming full conversion of the RPS, Hock Seng’s ownership in Magma will increase to 28.35 per cent, which will include 5.8 per cent held through his wife and approximately 11.24 per cent via Skyload.

Meanwhile, Chong Wei will emerge as a significant shareholder in Magma with a total stake of 14.37 per cent, comprising a direct 2.48 per cent and an indirect 11.89 per cent held through Skyload and his spouse, Datin Wong Mew Choo, who was not named in the filing.

The acquisition is expected to enhance Magma’s gross development value (GDV) by RM439.86 million, as the land has development orders for two 34-storey serviced apartment buildings and commercial units, enabling immediate development.

This transaction is classified as a related-party deal and will require shareholder and regulatory approvals. Magma aims to finalise the acquisition by Q1 2025, pending the necessary clearances from Bursa Malaysia.