https://www.engineeringnews.co.za

Blumont’s shares extend deep slide, Cokal offer scrapped

7th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Shares in Singapore-listed Blumont Group, which on Friday revealed that Australia-listed Cokal was the subject of its now-scrapped $124-million foreign takeover offer, continued to plummet on Monday.

The company was the second-biggest loser on the Singapore Stock Exchange (SGX) on Monday and had so far lost 82% of its value since revealing the name of its takeover target last week.

Blumont’s share price crashed by 56% on Friday, prompting the SGX to suspend share trading. When the suspension was lifted on Monday, the stock continued to slide to S$0.15 a share.

Cokal, which focuses on metallurgical projects in Indonesia and Tanzania, has requested that its share trading on the ASX remain suspended until October 8.

Blumont previously announced that it had reached an agreement on the commercial terms of a A$124-million takeover offer for a foreign-listed coal firm, without stating the name of the company. It would have paid for the acquisition by issuing about 72.2-million shares.

However, the significant decline in its share trading price had affected the commercial terms discussed with Cokal, and led to the companies scrapping the transaction, for the time being.

Blumont stated that negotiations with Cokal were continuing, as both companies continued to believe in the strategic merit underpinning the now cancelled transaction.

Blumont recently announced a $108-million investment in ASX-listed Discovery Metals, which owns the Boseto copper mine, in Botswana.

The head of Blumont's copper unit, Ines Scotland, was quoted on Monday saying that the price slump would not affect the company's deal with Discovery, adding that the decline in the share price had nothing to do with the fundamental value of Blumont's portfolio.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Latest News

Magazine video image
Magazine round up | 29 March 2024
29th March 2024

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.258 0.319s - 156pq - 2rq
Subscribe Now