Bio Osmo proposes to acquire six hospitality companies

PETALING JAYA: Drinking water company Bio Osmo Bhd proposes to acquire six companies for a total of RM425.9 million to expand its existing hospitality business.
Five of the companies are Impiana Hotels & Resorts Management Sdn Bhd (100% stake for RM70.84 million), Impiana Pangkor Sdn Bhd (100% for RM79 million), Astaka Mekar Sdn Bhd (100% for RM15.83 million), Intra Magnum Sdn Bhd (25% for RM12.68 million) and Impiana Cherating Sdn Bhd (100% for RM207.14 million), to be satisfied through the issuance of new shares and new irredeemable convertible preference shares (ICPS), at an issue price of 5 sen per share.
In addition, Bio Osmo’s 75%-owned Intra Magnum is buying Impiana Ipoh Sdn Bhd for RM40.41 million, which is to be satisfied via the combination of 174.11 million new shares, 116.07 million new ICPS and RM25.9 million cash.
Bio Osmo said the purchase sum falls within the range of the fair market value of RM397.80 million to RM439.98 million.
Following the acquisitions, Bio Osmo proposes to change its name to “Impiana Hotels (Malaysia) Bhd” to better reflect its principal business activity and the corporate identity.
The hospitality business contributed 51.6% to its financial year ended June 30, 2017.
In addition, the group proposes to undertake a private placement of up to 2 billion new shares to raise RM100 million at 5 sen per share for the repayment of bank borrowings, repayment of advances from shareholders and future expansion of hospitality assets/working capital.
Bio Osmo is also planning an offer for sale of up to 1 billion shares to independent third party investors at 5 sen per share.
On Bursa Malaysia today, Bio Osmo gained half a sen or 11.1% to close at 5 sen on volume of 544,000 shares.