KUALA LUMPUR (July 9): Magma Group Bhd (KL:MAGMA) has completed the redemption of its redeemable non-convertible preference shares (RPS) through a share set-off after the listing of 166.42 million new ordinary shares on the Main Market of Bursa Malaysia, concluding a RM47.71 million redemption exercise.

Managing director and chief executive officer Datuk Seri Thomas Liang Chee Fong said the completion of the RPS set-off marks a key milestone in strengthening the group's capital structure.

“The completion of the RPS set-off enables Magma to settle an existing obligation through a prudent non-cash mechanism while preserving financial flexibility to support our next phase of growth,” he said in a statement on Thursday.

Liang said the exercise was particularly timely as the group continued to advance its strategic initiatives, including the development of Wolo Hotel & Residences and Wolo Mont Kiara KL, while maintaining its focus on the hospitality and property development sectors.

“The exercise reflects our disciplined approach to capital allocation and our commitment to delivering sustainable long-term value for shareholders,” he added.

Magma said the redemption was fully settled through the issuance of 166.42 million new ordinary shares to Skyload Express Sdn Bhd, the RPS holder, at an issue price of 28.67 sen per share.

Following the exercise, the group's enlarged issued share capital increased to RM360.66 million, comprising 1.93 billion ordinary shares.

The exercise also eliminates future dividend obligations attached to the RPS, which carried a fixed dividend rate of 4% per annum, enhancing the group's financial flexibility, the hospitality, property and lifestyle company said.

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