KUALA LUMPUR (Aug 6): Magma Group Bhd's (KL:MAGMA) former executive chairman Datuk Seri Ismail @ Farouk Abdullah has ceased to be a substantial shareholder in the hotel management and property development company, following a stake trim.

Farouk's vehicle Impiana Sdn Bhd has disposed of 4.095 million shares or a 0.24% stake, Magma’s bourse filing on Wednesday showed. The filing listed the date of cessation as July 28.

The share sale pared his stake in the company to 4.86%, below the 5% threshold required to be deemed a substantial shareholder.

Farouk retired as executive chairman in May last year, succeeded by the then executive deputy chairman Datuk Seri Lee Hock Seng.

Farouk emerged as a substantial shareholder of Magma in April 2017. The company, then known as Bio Osmo Bhd, principally operated as a drinking water manufacturer.

He later raised his stake to over 19% and injected hotels parked under his private vehicles into the company for shares.

Bio Osmo was later renamed Impiana Hotels (Malaysia) Bhd and made hotel management its core business.

Shares in Magma ended 1.5 sen or 3.7% lower at 39 sen, valuing the company at RM647.63 million.