Technics Oil & Gas

Technics Oil & Gas Limited (“Company”) hereby
announces that the Company has agreed with Serendipity Energy Singapore Pte. Ltd. (“Purchaser”) to sell 6,000,000 treasury shares to the Purchaser at S$1.10 per share
(“Proposed Sale”). The Purchaser has agreed to deposit the aggregate purchase consideration
with an escrow agent over the next 21 days and completion of the Proposed Sale is expected
to take place 7 market days from such deposit.
The Board is aware that the Purchaser has also agreed with some non-substantial shareholdersof the Company to purchase their shares in the Company at S$1.10 per share as the Purchaser
intends to acquire an aggregate shareholding of about 20% in the Company.

We ask ourselves why Serendipity is willing to pay $1.10 per share when the shares are only trading in the market at around $1. The logical chain of thought leads to the conclusion that the Purchaser is a long-term shareholder willing to take a short-term paper loss while seeing a long-run price much higher than the current $1.10 paid.
 
- amfraser

Probability of falling is low cos of 20% accumulation target of the new substantial shareholder. For them to announce this target means they want to support the stock price. It's rare for such target % to be announced.

Running hard this morning to touch $1.03. Looking to sell at $1.09.

Buying has resumed... now $1.04. New SS wants to buy up to $1.10.

this is unusual -- seem to be a signal that Serendipity is not as cash-rich as they shld be to buy 6 m shares...No wonder the stock price was weak today, but rebounded end of the day.



The Company refers to its announcement made on 23 June 2011 regarding its proposed sale of
6,000,000 treasury shares to Serendipity Energy Singapore Pte Ltd (the “Purchaser”).
The Company wishes to advise that pursuant to the Purchaser’s request for an extension of time to
complete the transaction, the Company and the vendors have agreed with the Purchaser that
payment shall be made by the Purchaser in the following manner:
a) S$2 million deposit by 5pm on 22 July 2011 as security for the completion of the transaction;
and
b) the balance of the purchase consideration by 5pm on 29 August 2011,
failing which the transaction will be aborted.