Hot stock: BlackGold racks up heavy volume on potential acquisition by Indian firm

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hotstock: BlackGold racks up heavy volume on potential acquisition by Indian firm

SHARES of Indonesia-focused coal miner BlackGold Natural Resources rose on Thursday amid active trading, after it announced India’s S Lad Group sent a non-binding letter of intent for a proposed acquisition and tie-up.

The Catalist-listed counter gained 66.7 per cent or 0.8 Singapore cent to two cents as at 11.45am, with nearly 92.2 million shares changing hands. It was the most heavily traded by volume on the Singapore bourse for the morning. In its letter dated June 27, the Indian iron ore miner proposed a strategic collaboration on the BlackGold group’s mining assets and an acquisition of BlackGold, the latter said on Thursday night.

According to S Lad Group, the Bangalore-based company supplies iron ore and has more than five decades of experience in the mining business. The Indian conglomerate has diversified its mining business into several units including the manufacturing of pig iron. S Lad Group also has substantial interest in more than a dozen diversified firms in industries such as information technology, real estate, entertainment and aviation. These include property developers, movie and television production companies and an air cargo firm.

 

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