Oil tanker at Technics' jetty off Loyang Way. NextInsight file photo
Technics Oil & Gas goes into vessel repair
Technics Oil & Gas is proposing to acquire 80% in 2 marine vessel repair companies for S$16.46 million (at 1.2X book value).
The acquisition will be funded by the issue of Technics shares at 82.5 cents apiece (a 10% discount to market value) with a six-month moratorium from issue date.
Known as Marinelift Testing & Supply Pte Ltd and Rigging & Marine Services Pte Ltd, the two acquisition companies have a core business in the repair of ships, tankers and other ocean-going vessels as well as engage in civil engineering and construction works.
Their combined net profit before tax was S$2.7 million for the financial year ended 30 June 2014. Their combined NTA was S$17.14 million.
The sale and purchase agreement was inked just a few weeks after Technics received permission from the Maritime and Port Authority of Singapore to start operating its new jetty off Loyang Way.
The jetty and related infrastructure as well as deep-water dredging for a draft (minimum depth of water a vessel can safely navigate) of 6.6 metres took 3 years and nearly S$20 million to build.
The acquisition targets come with a good management team which has accumulated relevant business experience over the last 10 years.
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