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MMP Resources to move into brand development
ON the hunt for new opportunities in the newly identified business focus of travel, hospitality and leisure industry, MMP Resources is planning to partner global brand development firm Alliance Brands in joint ventures in selected countries.
Under a memorandum of understanding (MOU) signed by the two companies, Alliance Brands will issue shares worth S$1 million to MMP Resources, which in turn will issue an equivalent value of shares to Alliance Brands based on the previous three market days' trade value-weighted average price.
Upon completion of the share swops, MMP Resources will also provide a S$450,000 loan to Alliance Brands for working capital purposes.
Alliance Brands, which employs about 25-30 consultants, operates several food and beverage businesses. It comprises two segments: brand conceptualisation and brand activation, with a specific focus on the food and beverage industry.
For the joint ventures both will undertake, MMP Resources will provide the capital but receive 70 per cent of profit after tax.
MMP Resources executive director Paul Crosio said the MOU will enable the company to have direct access to brand design and operational teams.
"As the company seizes more construction and refurbishment opportunities, there is an increasing need for synergic brands as anchor tenants in shopping malls and commercial buildings," he said.
"The joint venture arrangement with Alliance Brand will also allow the company to create, operate and own its own brands, thus paving the way for regional and international expansion."