SINGAPORE (Mar 29): Blumont Group, one of the three counters at the centre of the penny stock crash saga in 2013, has entered into a term sheet for the proposed acquisition of Samadhi Retreats for up to $43.8 million.
Samadhi Retreats owns and operates hotels, resorts, and villas around Southeast Asia, as well as restaurant and tourism operations in the region. It also has ownership and development rights to certain real estate in Malaysia and Thailand.
Some $7 million of the purchase price will be satisfied in cash, while the remaining $36.8 million will be via the issue and allotment of 9.2 billion shares in Blumont at 0.4 cent each.
The issue price was fixed based on the volume weighted average price of 0.4 per share for the past 30 calendar days up to Mar 28.
In August last year, Blumont had received a 0.0182 cent each offer from an entity called Ultimate Horizon to take over the company.
Ultimate Horizon had earlier bought over 69.56% of Blumont for $4 million, which works out to an average price of 0.018172 cent – a discount of more than 80% over the counter’s then-last traded price of 0.1 cent.
See: Penny stock saga’s Blumont receives takeover offer at massive discount
Now, Blumont says the potential acquisition of Samadhi Retreats will diversify the group's current portfolio, reduce the group's reliance on its existing business, and provide the ompany with potential additional revenue streams.
Headquartered in Singapore, Blumont's businesses include investment holding, sterilisation of food packaging and medical devices, property as well as mineral and energy resources.
Shares of Blumont closed 0.1 cent down at 0.4 cent on Thursday.
