Blumont announces changes to proposed acquisition of Samadhi Retreats

BLUMONT Group announced Tuesday that it has entered a supplemental sale and purchase agreement regarding its proposed acquisition of all of Singapore-incorporated Samadhi Retreats Pte Ltd, to exclude two entities initially included in an earlier agreement.

On July 16, Blumont announced its entry into a conditional sale and purchase agreement with Asaro Federico and Baffyn International Corp to acquire Samadhi Retreats for no more than S$43.8 million. Following a presale restructuring exercise, the target company was expected to be the ultimate holding company of nine entities, including tourism and food and beverage businesses.

In Tuesday's announcement, this was reduced to seven out of the nine entities. Sri Lanka-incorporated Samadhi Retreats (Private) Limited and Thailand-incorporated Cheeva Na Tara Company Limited will not be included in the target group, as they have yet to commence any businesses or operations in Sri Lanka and Thailand respectively, said Blumont.

The aggregate consideration shall be revised to S$35 million, with S$7 million to be paid in cash and S$28 million by way of an allotment and issue of 9.2 billion ordinary shares in Blumont, at 0.3043 Singapore cent per consideration share.

The revised issue price represents a premium of 21 per cent and 12 per cent, respectively, over the volume-weighted average price of the shares of 0.2515 Singapore cent for the one-month period up to Oct 16 and 0.2717 Singapore cent for the three-month period up to Oct 16.

Blumont shares closed unchanged at 0.2 Singapore cent on Tuesday.