SINGAPORE Jan 8 Singapore's Blumont Group Ltd
, which suffered a sudden implosion in its share price
in October, has canceled its proposed acquisition of Hudson
Minerals Holdings Pte Ltd, which has interests in an Indonesian
iron ore exploration company.
In a statement to the Singapore bourse on Wednesday, Blumont
said it had terminated its agreement dated Dec. 21, 2012, in
relation to the proposed acquisition with immediate
effect. The deal could have been worth up to S$48
million ($37.7 million).
Blumont, which was previously involved in the packaging,
property and investment sectors, started investing in a number
of companies in sectors such as iron ore, coal, gold, uranium
and copper in 2012.
Shares of penny stocks, Blumont, LionGold Corp Ltd
and Asiasons Capital Ltd crashed in October after huge
run-ups in their share prices earlier last year, prompting the
Monetary Authority of Singapore to start an extensive review of
the share price volatility in the three inter-linked companies.
($1 = 1.2717 Singapore dollars)
(Reporting by Anshuman Daga; Editing by Matt Driskill)