Blumont plans S$43.8m acquisition of South-east Asian tourism firm

BLUMONT Group on Thursday said it plans to buy a South-east Asian tourism and F&B business for not more than S$43.8 million, with payment to be made through a mix of cash and shares.

It said it has entered into a term sheet with an Asaro Federico for a proposed potential acquisition of all of Samadhi Retreats Pte Ltd, a Singapore-incorporated company. The investment holding company, which is also undergoing internal restructuring, is expected to hold a portfolio of businesses in South-east Asia that deal with owning, developing, and operating hotels, resorts and villas; restaurant operations; and tourism operations.

Samadhi Retreats will also have ownership and development rights to certain real estate in Malaysia and Thailand, Blumont Group said.

The purchase will be paid for with S$7 million in cash. Another estimated S$36.8 million will be paid for through the issuance of 9.2 billion shares in Blumont, at the agreed issue price of S$0.004 per share. The issue price was based on the volume weighted average price of S$0.004 per share for the past 30 calendar days up to March 28, 2018.

Blumont said this potential acquisition will "diversify the group's current portfolio, reduce the group's reliance on its existing business and provide the company with potential additional revenue streams".

Its existing business is stated to be in the investment in transferable securities, as well as in mineral and energy resources projects. It said it also develops properties for sale.

Blumont was among the trio of penny stocks that had their shares allegedly manipulated in the infamous 2013 penny stock crash, Singapore's biggest market-rigging scandal to date.