MMP Resources' reverse takeover of GCM axed as unable to meet timeline

CONSTRUCTION company MMP Resources (formerly Sino Construction) announced on Thursday that its proposed acquisition of GCM - with the acquisition being a reverse takeover - will not be going ahead. It is preparing documentation to terminate the sale and purchase agreement.

The Singapore Exchange (SGX) had earlier granted a final time extension to June 14, 2021 to comply with listing rules. This is subject to certain conditions such as confirmations from the board of their understanding that the extension sought from SGX to complete the proposed acquisition by June 14, 2021 is the final extension requested by the company, and that they will take all necessary steps for a delisting should the company fail to meet the timeline for the reverse takeover.

As MMP Resources will not be able to meet the timeline for the reverse takeover and no further extension will be sought from SGX, it will be taking all necessary steps for a delisting.

Separately, MMP Resources on Thursday also announced a reconstitution of its board.

Drew Ethan Madacsi will step down as lead independent non-executive director and chairman with effect from Jan 28, 2021 due to "other work commitment". He was first appointed to his role in February 2015.

He will be replaced by Gerard Chong Chee Meng as the lead independent non-executive director and chairman. The rest of the board will consist of non-executive director Jason Block and independent non-executive directors Chan Ying Wei and Damian Paul Collins.

MMP Resources' shares closed at 0.6 Singapore cent on Thursday, down 0.3 Singapore cent or 33 per cent. It has been on SGX's financial watch list since March 3, 2016, following the notice of several consecutive years of losses.