Malaysian businessman makes mandatory takeover bid for Blumont

Blumont Group, one of the stocks involved in the infamous penny stock crash of 2013, has received a mandatory takeover bid from Malaysian businessman Siaw Lu Howe at 0.0182 cent a share.

The mandatory unconditional cash offer - detailed in a Singapore Exchange announcement yesterday - was triggered by the acquisition of a 69.56 per cent stake or 22 billion shares in Blumont by Ultimate Horizon yesterday for $4 million or 0.018172 cent a share.

Ultimate Horizon is a vehicle owned by Mr Siaw, who has businesses in hospitality, real estate and mining services in Sarawak.

The firm said the offer was final and would not be revised.

The offeror said that it plans to undertake a review of the group's business after the offer's close and to identify areas to enhance Blumont's strategic direction and operations.

It is the current intention of the offeror to maintain Blumont's listing status following completion of the offer.

As part of the review, the offeror may undertake an assessment of the group's human resource requirements in line with its future corporate direction.

Ultimate Horizon said it currently has no intentions to introduce any major changes to the existing business of the group, or to redeploy the fixed assets, or discontinue the employment of employees, other than in the ordinary course of business.

It also "retains the flexibility at any time to consider any options in relation to the group which may present themselves and which it may regard to be in the interests of the group".

Blumont is a loss-making investment holding and property, mineral and energy resources company that has been on a decline since imploding in the penny stock crash.

The collapse of Blumont, Asiasons Capital (now Attilan Group), and LionGold Corp in October 2013 triggered a massive sell-off in low-priced listed counters.

The company issued an early second-quarter results warning on Aug 11.

It said that it is expected to report net losses for the second quarter and six months ended June 30 - as it had granted 4.12 million share awards at 0.1 cent a share, and also incurred a loss on striking off a dormant subsidiary.

Blumont has traded below one Singapore cent since mid-2015.

The company requested that a trading halt in its shares be lifted yesterday after the release of the takeover bid announcement. The counter closed unchanged at 0.1 cent on volume of 151.5 million shares.

A version of this article appeared in the print edition of The Straits Times on August 25, 2017, with the headline 'Malaysian businessman makes mandatory takeover bid for Blumont'. Print Edition | Subscribe