Blumont Group, seeking to expand its mineral and energy assets, plunged by a record in Singapore trading and was suspended after agreeing to buy an overseas coal company for $146 million.
The stock slumped 56%, set for its biggest drop since it began trading in June 2000. Blumont will issue as many as 72.2 million new shares at $2.02 a piece as part of the transaction, it said today in a statement. It didn’t name the target company.
Blumont 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 ($136 million) in Australia’s Discovery Metals Ltd. in a deal that could give it control of the copper producer.
Blumont, which said in its statement the takeover needs shareholder approval, did not immediately respond to a phone call to its Singapore office and an e-mail seeking comment.
The Singapore Exchange also halted trading in LionGold Corp and Asiasons Capital. as it requested explanations for large share price declines. Blumont is the biggest gainer in Singapore in the last 12 months and closed at $2.02 yesterday.
The company sees an “unprecedented opportunity resulting from the recent severe impairment of asset prices in the mineral resources sector,” Blumont said in an Oct. 2 statement.
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