BIOOSMO (7243) - Link To Perak Royal Family.

Bio Osmo to diversify into hotel and resorts business

PETALING JAYA: Drinking water company, Bio Osmo Group Bhd is diversifying its income base into the hospitality and hotel development businesses by taking a 75% stake in Intra Magnum Sdn Bhd (IMSB), a company developing the Impiana Resort & Residences Cherating in Kuantan, Pahang, for RM18.75 million.

Bio Osmo told the stock exchange yesterday, upon completion of the proposed subscription, Bio Osmo and Impiana will hold 75% and 25% of the enlarged issued and paid-up share capital of IMSB respectively and have a direct exposure in hotel management activities of three hotels in Malaysia.

On Sept 11, IMSB entered into three hospitality management agreements (HMA) with three hotel owners namely, Impiana Cherating Sdn Bhd (ICSB), Impiana Hotel Ipoh Sdn Bhd (IHISB) and Impiana Tioman Sdn Bhd (ITSB).

As a result, IMSB had been appointed exclusively as the manager of Impiana Resort & Residences Cherating(, Impiana Hotel Ipoh( and Impiana Private Villas Tioman Island, respectively.

On the same date, IMSB also received three letters of award from ICSB, ITSB and Impiana Pangkor Sdn Bhd (IPSB) respectively where it was appointed as the development consultant for the proposed development of Phases 1B and 2 of the Impiana Resort & Residences Cherating, Impiana Private Villas Tioman Island as well as Impiana Pangkor Hotel and Resort.

Bio Osmo said it will be able to enjoy the long term recurring income stream through IMSB's business and operations in connection with the HMAs and letters of award.

It said that it will also have the opportunities to work hand-in-hand with the Impiana group of companies through IMSB, and to scale up on Impiana's experience and technical knowledge in the areas of hospitality management.

"The board also expects the additional stream of income to be derived from the development of Cherating land into holiday villas and residential suites. The board believes that the Impiana Resort & Residences Cherating is well positioned due to its strategic location along the Cherating beach belt in the state of Pahang, one of the tourist destinations in Malaysia, to meet the demand of both local and international purchasers and investors alike," it added.

Bio Osmo group intends to continue its drinking water business whilst venturing into the hospitality business.

Bio Osmo said the deal may also provide it with an avenue to expand its drinking water business to Impiana's hotels and resorts.

Bio Osmo said it intends to work towards securing contracts to supply reverse osmosis bottled drinking water to Impiana's hotels and resorts.

To raise funds for the subscription exercise, Bio Osmo plans to place out new shares of 5 sen each, representing up to 45% of its issued and paid-up share capital to third party investors to be identified at an issue price to be determined and announced later.

IMPIANA is control by PERAK Royal Family Dato Seri Ismail Farouk and Raja Dato Seri Eleena.

Raja Eleena was born at Penang, Malaya, 3 April 1960 as the fourth daughter of late Sultan Azlan Muhibbuddin Shah ibni al-Marhum Sultan Yussuf Izzuddin Shah Ghafarullahu-lah, later Sultan Azlan Shah of Perak

She is a director and major shareholder of Generasi Setia (M) Sdn Bhd, which is a major shareholder of Gamuda.

Her directorships in other public companies are with KAF-Seagroatt & Campbell Holdings Berhad and Danau Permai Resort Berhad.

Raja Datuk Seri Eleena Raja Azlan Shah was named in May 2007 as Malaysia's 25th richest in the country with assets worth over US$228 million (MYR 773 million). She becomes the list’s second woman after Puan Sri Chong Chook Yew, who occupies number 18th with US$320 million (MYR 1.085 billion).

BIOOSMO is link to Malaysia Perak Royal Family and Malaysia 2nd richest women. Based on these, BIOOSMO should worth 30sen.