Magma buys RM80mil Dutamas land from Lee Chong Wei’s Skyload

PETALING JAYA: Datuk Lee Chong Wei’s 45%-owned Skyload Express Sdn Bhd will dispose of a 2.26-acre leasehold land in Persiaran Dutamas, Kuala Lumpur to Main Market-listed Magma Group Bhd for RM80mil.

The land, located about 8km from the Kuala Lumpur city centre, has received approval for two 34-storey towers consisting of service apartments and commercial spaces.

The remaining 55% of Skyload is owned by Empire Solaris Sdn Bhd, which in turn is 80% controlled by Magma’s major shareholder and deputy executive chairman, Datuk Seri Lee Hock Seng.

Magma will pay for the land via RM8mil in cash and the issuance of 120 million new ordinary shares to Skyload, along with 47.71 million redeemable non-convertible preference shares (RPS).

The 120 million shares will be issued at 20.24 sen apiece, while the RPS will be issued at RM1 per share.

Upon completion of the land sale, Chong Wei will have a direct stake of 2.48% in Magma and an indirect stake of 11.89%.

Hock Seng, on the other hand, will see an increase in his equity control with direct and indirect stakes at 11.31% and 17.04%, respectively.

Magma also announced yesterday its plan to reduce its issued share capital by up to RM380mil.

“This action is intended to eliminate accumulated losses and improve the company’s balance sheet, which in turn will provide the financial flexibility to support future growth initiatives,” it said in a bourse filing.

Magma expects both corporate exercises to be completed by the first quarter of 2025.