Blumont Group Agrees to Buy Coal Producer in $117 Million Deal
Singapore-based Blumont will issue as many as 72.2 million new shares at S$2.02 apiece as part of the transaction, it said today in a statement. It didn’t name the target coal company.
Blumont, which is seeking to expand its mineral and energy assets, said this week it has held talks with 20 potential takeover targets or joint venture partners since December. The company agreed last month to invest A$116 million ($109 million) in Brisbane, Australia-based Discovery Metals Ltd. (DML) in a deal that could give it control of the copper producer.
Blumont sees an “unprecedented opportunity resulting from the recent severe impairment of asset prices in the mineral resources sector,” it said in an Oct. 2 statement.
Blumont plunged by a record 56 percent in Singapore, set for its biggest drop since the stock began trading in June 2000, before the Singapore Exchange halted trading.
The unnamed producer had a total comprehensive loss of about S$7.9 million in the year ended June 30, Blumont said. In addition to the takeover bid, Blumont said it had separately agreed to invest around S$97.7 million in the same company.
The offer will require shareholder approval, Blumont said.
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