• Sunday , 23 June 2024

Eversendai Expands Its Oil And Gas Business By Acquiring Equity Stake In Technics Oil & Gas Limited

KUALA LUMPUR, November 30, 2012 – Eversendai Corporation Berhad (“Eversendai”), a leading and well-established integrated structural steel turnkey and power plant contractor, has acquired a 11.19% stake in Technics Oil & Gas Limited (“Technics”), a company listed on the Singapore Stock Exchange (“SGX”).

This move is in line with The Group’s plan to expand its new businesses that is inter-related to its current core business. Dato’ AK Nathan, Executive Chairman and Group Managing Director of Eversendai, said: “The strategic investment in Technics will enable Eversendai to secure a stronger footing in the oil and gas fabrication sector, which is in line with the Company’s business plan to venture into inter-related sectors. Eversendai would not only benefit from Technics’ established track record in the aforesaid sector, but also Technics’ expertise in compression systems and process modules, which are expected to complement the Company’s structural steels design, engineering and construction capabilities.”

“Eversendai has a strategic long term business plan to deliver future growth and enhance shareholders value. Expansion into inter-related business is the next logical step in building for future growth. We will have the resources and technology to meet the increasing client demand in the engineering and construction services required in this high growth industry” added Dato’ AK Nathan.

Technics was established in 1990 and it became a public-listed entity on Singapore Exchange SESDAQ in April 2003 and was subsequently upgraded to the Mainboard of the Singapore Exchange in January 2008. Growing from strength to strength, now Technics is a leading full service integrator of compression systems and process modules for blue-chip oil and gas customers.

Technics specialises in the design and fabrication of complex and highly customised process modules and equipment, including gas compression packages, which are integrated to form the operating system for production operations and storage applications in both onshore and offshore oil and gas exploration and production activities. Meanwhile, Technics operates three waterfront yards, which are located in Singapore, Indonesia’s Batam and Vietnam, and has offices in Singapore, Batam, Jakarta and Vietnam, respectively.

Dato’ AK Nathan added, “This is a step towards a bigger plan for Eversendai that entails acquiring different entities which will be able to add value and enhance the financial performance of The Group. However, this move will not distract the Company from its core business but on the contrary the acquisition of a stake in Technics Oil & Gas Limited serves as an excellent opportunity for Eversendai to enhance its shareholders’ value by expanding further into the oil and gas sector.”

In conclusion, Dato’ AK Nathan said, “The transaction is an exceptional opportunity that could offer significant benefits for both Eversendai and Technics. We foresee that this strategic investment would enhance Eversendai’s financial performance by way of creating better opportunities in terms long-term profitability and cash flow.”