Singaporean construction company MMP Resources has engaged a banking institution in Singapore as the firm’s financing and capital markets advisor to raise some US$30 million, said in a regulatory filing on Monday, The Straits Times reports.
The banking institution was not named.
As of 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.
But in December, MMP Resources said that it would acquire a 50 percent stake in a joint venture (JV) company, which owns an operating gas field in Russia, from Lloyds Energy for S$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.
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.
Shares in the company closed flat at 0.6 cents apiece on Friday. The counter has been on the Singapore Exchange’s watch list for not meeting both the financial and minimum trading price criteria.
MMP says the proposed Russia acquisition is part of the corporate strategy of the group to provide shareholders with better returns and long-term growth.