SINGAPORE (Dec 5): Construction company MMP Resources is diversifying into the natural gas and energy business through the proposed $25 million acquisition of a 50% stake in an operating gas field in the North-West region of the Russian Federation called Asia One.
The vendor is Lloyds Energy who holds 50% stake in a joint venture limited liability company that owns 100% of Asia One.
With the completion of the acquisition, the company will be considered a “mineral, oil and gas company” under the listing rules of the Singapore Exchange.
The company also intends to dispose its existing Japanese assets after the completion of the proposed acquisition.
MMP says the proposed acquisition is part of the corporate strategy of the group to provide shareholders with better returns and long-term growth.
Lloyds Energy aims to become a leading global “gas to wire” liquefied natural gas (LNG) player, linking major international gas suppliers and gas consumers.
MMP will pay Lloyds in cash for the first tranche of $250,000. For the remaining sum in the second tranche, Lloyds can opt to be paid fully or partially with shares in MMP.
As at 11.35am, shares in MMP are trading at 0.4 cent.