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SGX grants MMP Resources extension of up to 1 year to satisfy watchlist removal requirements

CONSTRUCTION company MMP Resources announced after trading hours on Wednesday that its application for a time extension to satisfy requirements for removal from the financial watchlist has received approval from the Singapore Exchange (SGX).

The company has been on the watchlist since March 3 2016, following the notice of three consecutive years of losses.

MMP Resources was granted an extension of up to 12 months to March 1 2020 to meet listing rules. The reasons given by the company were that it has not satisfied the requirements for removal from the watchlist, and that the company is currently in the process of negotiating with third parties on the acquisition of certain viable businesses and assets in the liquefied natural gas industry.

The company added that it believes the incoming assets and businesses will "increase the prospects and viability of the group".

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"The current envisaged structure for the consideration payable to such third parties includes, among others, an option to convert into new shares in the company," it said.

As such, the company is of the view that it would be in its own interest and of its shareholders to continue to be publicly listed and traded on the SGX Mainboard.