Bio Osmo up 40% on proposed hotel buy from major shareholder

KUALA LUMPUR (April 13): Bio Osmo Bhd shares rose as much as two sen or 40% to seven sen on news substantial shareholder Datuk Seri Farouk Abdullah is proposing to inject hotels currently parked under his private vehicles into Bio Osmo under a cash and share deal.

At 12:30pm, Bio Osmo shares settled at six sen for a market value of RM47.72 million. Bio Osmo was Bursa Malaysia's third most-active stock with some 44 million units traded.

Bio Osmo is already involved in the processing, manufacturing and selling of drinking water. Yesterday, Bio Osmo told Bursa Malaysia the diversification into the hospitality businesses, which took place in 2016, has been contributing profit while the bottled drinking water division is incurring losses. Bio Osmo said Farouk already owns a 19.61% stake in the company.

Bio Osmo said: "Upon receipt of the consideration shares, the shareholdings of Farouk in Bio Osmo will increase to more than 33% equity interest in the company. Under paragraph 4.01(a) of the Rules on Take-Overs, Mergers and Compulsory Acquisitions, Farouk and persons acting in concert (PACs) with him will be obligated to extend a mandatory general offer to acquire the remaining Bio Osmo shares not already held by him and the PACs immediately upon the agreements becoming unconditional.

The company proposes to change its name to 'Impiana Hotels (Malaysia) Bhd' to better reflect its principal business activity and the corporate identity of the company upon the completion of the proposed acquisitions." — theedgemarkets.com

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