Malaysian launches takeover bid for Singapore’s Blumont - Business News | The Star Online

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Malaysian launches takeover bid for Singapore’s Blumont


SINGAPORE: Blumont Group, one of the stocks that was at the centre of Singapore’s largest case of financial fraud, is now the subject of a takeover bid for 0.0182 cent a share.

The mandatory unconditional cash offer was triggered on Thursday by the acquisition of a 69.56% stake or 22 billion shares in Blumont by Ultimate Horizon Pte Ltd for S$4mil or 0.0181 cent a share.

Ultimate Horizon is owned by Malaysian businessman Siaw Lu Howe.

The firm has said that its offer price would not be revised and that it is final.

According to the filing with the Singapore Exchange, Siaw is engaged in hospitality, real estate and mining services businesses primarily located in Sarawak.

Blumont, an investment holding and property, mineral and energy resources company, came into notoriety during Singapore’s 2013 penny stock crash, which saw 95% of the firm’s market value wiped out in a single week of trading.

The alleged mastermind was Malaysian businessman John Soh Chee Wen, who was arrested in November last year and remains in remand for manipulating the share prices of Blumont and two other penny stocks, namely LionGold Corp and Asiasons Capital. Together, the three counters saw catastrophic losses of S$8bil in market value during the 2013 debacle.

Soh and another accused are alleged to have also cheated Goldman Sachs International and Interactive Brokers LLC into extending them S$170mil in margin financing.

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