Magma Group Receives Shareholders Approval for RM100.0 Million Redeemable Convertible Notes Fund-Raising Exercise

Company Secures Shareholders’ Support to Strengthen Financial Position and Drive Sustainable Growth

KUALA LUMPUR, 10 SEPTEMBER 2024 – Magma Group Berhad ("Magma" or the "Company"), a dynamic hospitality and investment holding group, today announced that its shareholders have given their approval at the Extraordinary General Meeting ("EGM") for the Company's proposed issuance of Redeemable Convertible Notes ("RCN") aimed at raising up to RM100.0 million. This strategic move is expected to strengthen Magma's financial standing and support the Company's long-term growth objectives across its core business segments.

The funds raised from the RCN issuance will be allocated towards bolstering the Company's working capital requirements, modernising our hotel facilities through refurbishment and upgrades, expanding our 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.

Dato' Sri Thomas Liang Chee Fong, Group Managing Director of Magma Group Berhad commented, "We are grateful for the strong support from our shareholders, which demonstrates their confidence in the Company's long-term vision. 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."

The RCN issuance highlights the Company’s efforts to optimise its capital structure. Magma is confident that these efforts 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. Additionally, Magma plans to channel a portion of the proceeds towards the modernisation of its flagship hotels, such as Hotel Impiana Ipoh, and others within its portfolio, to further elevate the guest experience and improve operational efficiency.

The EGM also saw shareholders reaffirm their support for Magma's growth trajectory, underpinned by the Company's focus on expanding its hotel operations and improving occupancy rates and Average Room Rates ("ARR"). With the anticipated uptick in tourist arrivals and increasing consumer confidence, Magma is well-positioned to capitalise on these favourable market trends.

Magma remains focused on achieving its strategic objectives and driving long-term shareholder value through a combination of robust financial management, innovative offerings, and targeted growth initiatives. The Company’s leadership is confident that the successful completion of the RCN issuance will enable it to navigate the evolving economic landscape while delivering enhanced value to its stakeholders.