Falling petrol prices to blame, says Bio Osmo

PETALING JAYA: Bio Osmo Bhd, a local drinking water producer and manufacturer which had on Wednesday aborted plans to diversify into the oil and gas business, blamed falling global oil prices for terminating a conditional share sale agreement to buy 49% into Bayam Enterprise Sdn Bhd for RM17.15 million.
"In view of the declining petroleum product prices worldwide, the company opines that the prospects of the oil and gas as well as the peripheral industries going forward may not be as robust as anticipated earlier.
"Therefore, the company decided not to pursue any exposure into the oil and gas related service industry at this juncture, and as such has terminated the proposed acquisition," It said.
However, in a stock exchange filing yesterday, Boi Osmo it will continue to pursue suitable business or businesses for the purpose of acquisition to enhance the profitability of the company going forward.
Following its announcement to mutually terminate its plans to buy Bayam, Bio Osmo shares fell 1.5 sen, or 13.64%, to close at 9.5 sen yesterday.