Penny stock saga’s Blumont receives takeover offer at massive discount

Penny stock saga’s Blumont receives takeover offer at massive discount

Chan Chao Peh
24/08/17, 02:55 pm

SINGAPORE (Aug 24): An entity called Ultimate Horizon has made a 0.0182 cent per share offer to take over Blumont Group.

The takeover deal values Blumont at $5.8 million, which is more than 80% off its market value of $31.65 million based on its last traded share of 0.1 cent.

Blumont was one of the three counters at the centre of the penny stock saga of October 2013 whose alleged mastermind John Soh Chee Wen is now in remand and awaiting trial.

Headquartered in Singapore, Blumont's businesses include investment holding, sterilisation of food packaging and medical devices, property as well as mineral and energy resources.

In an SGX announcement, Blumont said that Ultimate Horizon had earlier today bought over 69.56% of the company for $4 million. This purchase works out to an average price of 0.018172 cent, which is a discount of more than 80% over the counter’s last traded price of 0.1 cent.

While the offer price is a massive discount off the last traded price, it is actually not too far off the company’s net asset value. As of June 30, Blumont’s NAV was 0.02 cent, down from 0.03 cent at Dec 31 2016.

According to Blumont’s FY2016 annual report, as of March 27, its largest shareholder is Platinum Partners Value Arbitrage Fund LP, which held 48.60% of the company.

The second largest shareholder is the Platinum Partners Credit Opportunities Master Fund LP, which held another 35%.

Ng Kim Huatt, the company’s sole executive director, holds 100 million shares, or 0.36%.

With Ultimate Horizon having assumed ownership of more than 30% of Blumont, under listing rules of the Singapore Exchange, a compulsory general offer has to be made to the rest of the shareholders.

According to Blumont’s announcement, Ultimate Horizon is solely-owned by a Malaysian businessman Siaw Lu Howe, whose interests are mainly in the state of Sarawak in areas ranging from hospitality, real estate and mining services. Besides Siaw, Ultimate Horizon has another director, Kek Wei Na.

On Aug 14, Blumont losses for the quarter to June 30 nearly doubled to $5.35 million from $2.8 million a quarter earlier. Revenue in the same period fell 9% to $861,000.

mm2 Asia conducts strategic review, exploring possibility of foreign listing

SINGAPORE (Sept 20): mm2 Asia, whose CEO Chang Long Jong is on The Edge Singapore's cover this week, has appointed Haitong International Securities to conduct a strategic review of the group’s businesses. Through the review process, mm2 aims to enhance its corporate profile, branding and market awareness in the North Asia markets where it currently operates. It also hopes to explore the possibility of seeking “a foreign listing of some of the group’s key assets and/or businesses, which may include the cinema operations, to further enhance shareholder value”. In its filing to t....

Alibaba's Jack Ma says can't meet promise to create 1 million US jobs

SAN FRANCISCO (Sept 20): Alibaba Chairman Jack Ma said the company can no longer meet its promise to create one million jobs in the United States due to US-China trade tensions, Chinese news agency Xinhua reported on Wednesday. Ma had met US President Donald Trump two years ago and laid out the Chinese e-commerce giant's plan to bring one million small US businesses onto its platform to sell to Chinese consumers over the next five years. "This commitment is based on friendly China-US cooperation and the rational and objective premise of bilateral trade," Ma told Xinhua. "The current situ....

Ascott REIT to build 324-unit coliving property at $62.4 mil one-north site

SINGAPORE (Sept 20): Ascott Residence Trust (Ascott REIT) has acquired a prime greenfield site at one-north for $62.4 million to build its first co-living property. To be named lyf one-north Singapore, the property will offer 324 units. It is slated to achieve Temporary Occupation Permit by 2020 and open in 2021. The site is located at Nepal Hill, where there is a thriving research and innovation community comprising 400 companies, 800 startups and 50,000 professionals. The 200-ha one-north estate has attracted over $7 billion worth of investments in critical growth sectors such as th....