Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 21): The mandatory general offer (MGO) by Bio Osmo Bhd’s largest shareholder Datuk Seri Farouk Abdullah to acquire the remaining shares in the group that he does not already own, has become unconditional.

This follows the approval given by the group’s shareholders today, Bio Osmo said in a filing with Bursa Malaysia.

Bio Osmo, whose principal business is in the processing, manufacturing and selling of drinking water, is expected to rebrand into a hospitality business after Farouk injected hotels parked under his private vehicles into the group, effectively triggering an MGO.

Bio Osmo had in April 2018 signed six share sale agreements to acquire hotels under the Impiana brand in Kuala Lumpur, Ipoh, Cherating, commercial land in Pangkor, as well as the hotel management company of Impiana, for a total purchase consideration of RM425.9 million.

The proposed acquisition entails the issuance of 4.8 billion consideration shares, 3.2 billion consideration irredeemable convertible preference shares, and a cash payment of RM25.9 million.

Upon receipt of the consideration shares, Farouk’s shareholdings in Bio Osmo will increase to more than 33%, from 19.61% currently.

With the completion of these proposals, Bio Osmo plans to change its name to Impiana Hotels (Malaysia) Bhd.

Bio Osmo first diversified into the hospitality industry in late 2016, when it acquired a 75% equity stake of Intra Magnum Sdn Bhd from Impiana Sdn Bhd.

Farouk, 72, is the founder and executive chairman of Impiana Sdn Bhd. 

Bio Osmo was 0.5 sen or 7.69% lower at six sen in afternoon trade today, for a market capitalisation of RM51.7 million. Some 15.7 million shares have been traded.

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