Blumont Group Ltd. (SGX:A33) signed an agreement to acquire remaining 94.09% stake in Merlin Diamonds Limited (ASX:MED) from a group of shareholders for AUD 32.6 million in stock on February 28, 2014. The group of shareholders include Legend International Holdings, Inc., Dalkeith Resources Pty. Ltd., Yandal Investments Pty Ltd., Credit Suisse, Investment Banking and Securities Investments, Regals Capital Management LP, ISR Investments LLC, Newton Centre Development Limited, Denman Audio Pty Ltd, Tortuga Advisors Ltd, Dolahenty Pty Ltd, Spadaccini Holdings Pty Ltd., Bonos Pty Ltd, Elmenson Pty Ltd., UOB Kay Hian Private Limited and others. Under the terms of the deal, Blumont will offer 5.7 Blumont shares for every 2 Merlin Diamonds shares. Blumont will acquire 212.14 million shares of Merlin in the transaction. Merlin Diamonds and Blumont will pay break up of AUD 0.13 million in case of termination of agreement. In a related transaction, Blumont subscribed 13.3 million shares in Merlin Diamonds at AUD 0.078 per share on February 17, 2014.

The transaction is subject to a minimum acceptance of 50.1% of the Merlin Diamonds shares on issue, no shop, no talk, notification and matching rights in favor of Blumont, prior to the end of the offer period, Blumont receives the approval of shareholders, no action by government agency adversely affecting the bid, Blumont receiving the approval of SGX-ST for the listing and quotation of the shares to be issued as offer consideration, relevant government agencies and Merlin Diamonds options lapse or are exercised. The takeover bid will be open for acceptance for a period of two months from the date Blumont Group's Statement is lodged and issued.

The transaction is unanimously recommended by the Directors of Merlin Diamonds, in the absence of a superior proposal. On April 23, 2014, Blumont Group Ltd. revised its offer for the fully paid ordinary shares in Merlin to five Blumont shares for every one Merlin share. Blumont's offer period for Merlin shares has been extended to 3 months. The offer will remain open for acceptance during the period commencing on April 28, 2014 and ending on July 31, 2014. As of May 2, 2014, First Supplementary Bidder's Statement was filed, which has been approved by a unanimous resolution passed at a meeting of the Directors of Blumont. As of May 21, 2014, Bidder's Statement was filed where, Merlin Diamonds shareholders has choices for the consideration to be received mentioned in the bidders statement which are (a) Merlin Diamonds shareholders may elect to accept the offer, (b) sell the shares in the market or (c) take no action. Michael will remain as Executive General Manager of Merlin Diamonds. As of July 18, 2014, the tender offer period will close by September 30, 2014. As of September 17, 2014, the tender offer period will close by February 13, 2015. As of October 29, 2014, Merlin Diamonds issued, and lodged with ASIC and the ASX, its fifth supplementary bidder's statement. As on October 29, 2014, the new date for giving status of the conditions is February 5, 2015. As of November 27, 2014, Merlin Diamonds terminated the Implementation Deed. The takeover bid however, continues and is scheduled to close on February 13, 2015. As on January 5, 2015, Blumont made an application to ASIC to obtain ASIC's consent to enable Blumont to withdraw the takeover bid.

Cornwall Stodart acted as legal advisor, Link Market Services Limited acted as registrar and Axis Consultants Pty Ltd acted as broker for Merlin Diamonds. Link Market Services Limited acted as transfer agent and Holding Redlich acted as legal advisor to Blumont. Moore Stephens Perth Corporate Services Pty Limited acted as accountant and Ord Minnett Limited acted as financial advisor to Blumont. Blumont will pay a fee of AUD 0.15 million to Holding Redlich and AUD 0.052 million to Moore Stephens Perth.

Blumont Group Ltd. (SGX:A33) cancelled the acquisition of remaining 94.09% stake in Merlin Diamonds Limited (ASX:MED) from a group of shareholders on January 16, 2015. The deal was terminated as Merlin Diamonds issued an additional 78.5 million new Merlin shares on December 29, 2014 and issue of the Further New Merlin Shares triggered a breach of a defeating condition. The cancellation was approved from Australian Securities and Investments Commission.