Ezion Holdings

[Some-one]

http://infopub.sgx.com/FileOpen/Ezion_An...eID=290099

Share exchange for subscription of new shares in JK Tech - no cash involved but for sure will attract interests in smallish JK Tech. Typical darling stock action - issue paper for corporate actions

Ezion Holdings takes up strategic stake in JK Tech Holdings

Published on Apr 06, 2014
6:46 PM

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By Dennis Chan

Ezion Holdings is taking a strategic stake in Catalist-listed JK Tech Holdings.

The mainboard-listed has agreed to subscribe for 42 million new JK Tech shares at nine cents apiece or $3.78 million.

The offshore marine group also has an option to acquire an additional 260 million shares at nine cents apiece.

Giving its rationale for the investment, Ezion said it had come across opportunities in the exploration, exploitation and production of oil and gas in the course of its business.

Hope to see some opinions from buddies. I don't think it is a good idea for Ezion to do oil exploration especially when its debt are high and this is a totally new business.

Given that Ezion's main business is in chartering, I don't see how doing oil exploration would complement their main business. Capital expenditure of doing oil exploration is higher than chartering. Just look at Linc Energy and Kris Energy.

I don't think this bodes well for Ezion shareholders.