Impiana set for multimillion ringgit expansion in hospitality business

PHUKET: Bio Osmo Sdn Bhd, soon to be renamed as Impiana Hotel Bhd ( Impiana), is embarking on a multimillion ringgit expansion of its hospitality business, following the proposed acquisition of five companies for nearly RM426 million.

The companies are Impiana Hotels and Resorts Management Sdn Bhd, Impiana Pangkor Sdn Bhd, Astaka Mekar Sdn Bhd, Intra Magnum Sdn Bhd and Impiana Cherating Sdn Bhd.

Impiana executive director Azrin Kamaluddin said the acquisitions will be satisfied via the issuance of new shares ( RM240 million), irredeemable convertible preference shares ( ICPS) ( RM160 million) and RM25.9 million in cash.

“We are targeting to complete the acquisitions by April 11, after which the company will become an investment holding company with two principal business divisions -- hotel operations and hotel management,” he told reporters during a media visit to Impiana Resort Patong here recently.

The company will also issue two billion shares worth RM100 million via private placement to independent third party investors at the initial price of RM0.05 sen per share.

Proceeds from the private placement of shares will be used for the repayment of bank borrowings ( RM339.7 million), repayment of advances from shareholders ( RM33.72 million), future expansion of hospitality assets and working capital ( RM18.57 million) and for the estimated expenses for the exercise ( RM8 million).

“The acquisitions will enhance the company’s earnings and further expand its existing hospitality business.

“It will also allow the company to achieve a balanced mix of institutional and retai l investors, as well as to strengthen shareholders fund,” he said.

Meanwhi le, Azrin said Impiana Cherating is currently being redeveloped by Intra Magnum, together with Impiana Cherating Sdn Bhd.

“It is one of the oldest resort in Impiana’s stable. It sits on 30 acres and has 100 rooms, which we think is a very inefficient use of land.

“So we have decided to demolish and redevelop it to almost 500 rooms. The construction will be done in stages -- the first phase will be opened by 2021, while final phase will be completed by 2023,” he said.