Singapore's Blumont Group plans $117 million takeover of coal miner
MELBOURNE (Reuters) - Singapore conglomerate Blumont Group (BLUM.SI) said on Friday it has agreed terms on a proposed takeover of a foreign-listed coal company for about S$146 million ($117 million), sending its shares plummeting 39 percent.
Blumont did not name its target, but said it had made previous investments in the company. A company it has invested in, Australian-listed coal explorer Cokal Ltd (CKA.AX), went on a trading halt at the same time.
Blumont said the acquisition would be paid for through a share issue of about 72.2 million new Blumont shares.
Separately, it said it had agreed to invest up to about S$98 million in the target by buying new shares and convertible bonds issued by the target.
Cokal's shares traded up 4.6 percent at A$0.23, valuing the group at A$104.7 million ($98.2 million) ahead of the trading halt.
Blumont shares dived 39 percent to S$1.225 following its announcement. Blumont shares had been the best performer in the Singapore market so far this year ahead of the announcement, data from Thomson Reuters StarMine shows.
Cokal is focused on developing metallurgical coal in Indonesia, where its Bumi Barito Mineral project was recently granted a mining production license.
Cokal's spokesman was not immediately available for comment.
(Reporting by Sonali Paul; Additional reporting by Rujun Shen; Editing by Richard Pullin)
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