“Magma Group plans to acquire LUMA Hotel in Kota Kinabalu for RM60.9 million in a cash-and-shares deal to expand its hospitality portfolio and strengthen recurring income.”
Kuala Lumpur, 06th March 2026, 03.36pm – Magma Group Bhd plans to acquire the LUMA Hotel Kota Kinabalu for RM60.9 million in a cash-and-shares transaction as part of its strategy to expand its hospitality portfolio.
In a filing with Bursa Malaysia, the company said its wholly owned subsidiary, Magma Avenue Sdn Bhd, has signed a heads of agreement to purchase the hotel business together with four adjacent buildings in Kota Kinabalu, Sabah.
Under the proposal, Magma will acquire 100% equity in HH Home Hotel Sdn Bhd, the owner of the LUMA Hotel brand and business operations, for RM12.8 million through a combination of cash and the issuance of 27.15 million new Magma shares.
The transaction also includes the purchase of four buildings where the hotel currently operates. Two buildings will be acquired from HKT Realty and Gamwon Properties respectively, each valued at RM16 million. Payment will be made via a mix of cash and 14.55 million Magma shares for each property.
Meanwhile, the remaining two buildings will be obtained through the acquisition of 100% equity in Zenith Everise Sdn Bhd for RM7.6 million and Upper Domain Sdn Bhd for RM8.5 million from their respective shareholders.
All shares issued under the deal will be priced at 33 sen each, based on the five-day volume-weighted average price of Magma shares up to March 4.
Magma said the proposed acquisition aligns with its long-term strategy to strengthen its hotel portfolio and expand recurring income streams from hospitality assets with strong growth potential.
Currently, the group operates and manages hotels under the Impiana Hotels brand, while also engaging in property development and operating the Chagee tea chain in Malaysia.
Shares of Magma closed at 31.5 sen on Thursday, down one sen or 3.1%, giving the company a market capitalisation of about RM541.9 million.
