Magma Group Announces Positive Withdrawal from Legal Proceedings, Sets Stage for a New Beginning

KUALA LUMPUR, Jan 10, 2024 - (ACN Newswire) - Magma Group Berhad ("Magma" or the "Company"), a dynamic investment holding group, today announced a significant development in the Company’s ongoing legal proceedings.

During the Case Management held on 9 January 2024, the Court granted permission for Public Bank Berhad (“the Plaintiff”) to withdraw the Suit against the Defendants, which includes Astaka Mekar Sdn Bhd, a wholly-owned subsidiary of Magma. This withdrawal is executed with the liberty to file afresh and without any order as to costs, marking a pivotal moment for the Company.

The Suit, originally filed by Public Bank Berhad against Magma Group Berhad’s subsidiaries and associated parties, stemmed from disputes regarding the settlement of outstanding sums under various Term Loan Facilities and Overdraft Facility. The Plaintiff had sought substantial repayments, including accrued interest, from the Defendants under these facilities.

In the positive turn of events, the Court had allowed for a withdrawal of the Suit, signals a hopeful stride for Magma Group Berhad. It offers an avenue for the Company to recalibrate its focus and strategies for future opportunities, untethered from the constraints of this protracted legal battle.

Dato' Sri Thomas Liang Chee Fong, Managing Director of Magma Group Berhad, expressed his views on this development: "This decision marks a watershed moment for Magma Group Berhad. It allows us to start afresh, leaving behind the challenges we've faced in the legal arena. Our focus now shifts to harnessing new opportunities and reinforcing our commitment to sustainable business growth. We are optimistic about the future and are poised to explore new avenues that align with our strategic objectives."

Magma remains steadfast in the Company’s commitment to uphold strong corporate governance and ethical business practices. The Company believes that this new chapter will enable it to strengthen its market position and deliver greater value to its shareholders and stakeholders.

The Company will continue to provide updates on further developments in due course.

As at 10 January 2024, 12:30 P.M., the share price of Magma stood at RM0.270, representing a market capitalisation of RM255.2 million.