MMP Resources hires bank adviser to raise US$30m

SINGAPORE - MMP Resources has engaged a banking institution in Singapore as the firm's financing and capital markets adviser to raise some US$30 million (S$40.8 million), the construction company said in a regulatory filing on Monday (Jan 21).

The banking institution was not named.

Among other things, the adviser will provide assistance on certain transaction or transactions which have been announced, or are being contemplated by the company, MMP Resources said.

As at Jan 21, the firm has not entered into any binding agreements in respect of potential transactions, including any fundraising activities. It added that it will make the necessary announcements where there are further material developments.

In December last year, MMP Resources said that it would acquire a 50 per cent stake in a joint venture (JV) company, which owns an operating gas field in Russia, from Lloyds Energy for $25 million.

The JV company owns the Asia One gas field in Russia's north-west region, valued at $50 million by MMP-appointed independent valuer Gaffney, Cline & Associates.

Shares in MMP Resources closed flat at 0.6 cent apiece on Jan 18. The counter has been on the Singapore Exchange's watch list for not meeting both the financial and minimum trading price criteria.