Technics O&G

Technics O&G - No reason to explain its drop today. Note that grp's boardmembers has just approved grp's resolution in its recent EGM. Key findings were as follows: Technics O&G: Grp just concluded its AGM and key findings were as follows. Recall through open market purchases of Technics shares, Eversendai emerged as a substantial shareholder with a 13.85% stake in early Dec and is targeting to own 20% to become an associate and is able to equity account Technics' profit. To support Eversendai's move towards the 20% target, Technics has proposed to issue new shares amounting to 5% of its enlarged capital. Assuming the share issue is approved, Eversendai still has to go to the open market to buy the shares it wants for it to hit its target 20% stake. Technics now fabricates and commissions topside modules for wellhead satellite platforms (WSP), but does not do the heavy jacket fabrication. OSK-DMG note that recently Technics bidding for full WSP contracts and then subcontracting the jacket fabrication to Eversendai. Further, Eversendai’s presence in Msia may be Technics’ entry point into the highly-lucrative Petronas capex budget. Note that Eversendai has highlighted its strong business contacts in the Middle East and its potential to pave the way for Technics to secure business in that region which Technics is not established in. DMG has a Buy call on counter with $1.20 TP.