PETALING JAYA: Loss-making bottled water player Bio Osmo Bhd may see the emergence of a new shareholder and the injection of a new business, after its group managing director Datuk Seri Krishna Kumar Sivasubramaniam resigned and sold his stake in the company, said an industry source.
A collaterised loan obligation (CLO) worth some RM35mil, which Bio Osmo owed to Idaman Capital Bhd, has been fully-settled, after the outstanding amount of about RM15mil was converted to Bio Osmo shares at its par value of 20 sen, said the source.
The conversion to equity was done via an agreement between both parties, and the new shares have yet to be listed on Bursa Malaysia.
This also means that Idaman Capital will be a new shareholder of Bio Osmo, although the number of shares it has received via this conversion is uncertain.
Filings with Bursa Malaysia showed that Krishna Kumar ceased as managing director on June 30.
As of press time, there has yet to be an announcement showing that he had sold his direct stake of 25 million shares or a 12.5% stake in the company.
“Since the floods in Thailand last March, a few suitors had approached Bio Osmo with the intention of buying over its plant in Batu Pahat, Johor. The plant's proximity to the ports in the south was one of its key attractions,” said the source. “The new shareholder is possibly looking to inject a new business, as the bottled water business has been doing very badly.”