Techenomics Mongolia seeks to divest 51% stake
Techenomics Mongolia has established itself as a successful business on the back of proven oil analysis and total fluid management services, supported by a team of enthusiastic, talented, dedicated and committed Mongolians.
The team introduced Techenomics’ globally-renowned, independent predictive maintenance services to mining and industry in Mongolia in 2012 and has seen the local operation win contracts with many of the country’s mining and industrial operations, including the world-class Oyu Tolgoi Copper-Gold Project.
Techenomics International CEO Chris Adsett says the company has great faith in the future of Mongolia and in the ability of the company’s Mongolian team to grow with the country.
“As such, we aim to place this trust in the hands of locals by divesting a 51% stake in the Mongolian operation.
“We see this as the premium way to secure the future of the Mongolian business by way of gaining further work within the country.”
Chris Adsett says increasingly private companies and government bodies in Mongolia are looking to locals to achieve future development and growth.
For instance, he says, as part of new contracts for the massive Oyu Tolgoi underground operation, Rio Tinto, the mine’s majority owner through Turquoise Hill Resources, is committed to securing as much work as possible for Mongolian businesses.
Where possible contracts will be signed with companies that are majority owned and operated by Mongolians.
“It is, therefore, in the best interests of Techenomics Mongolia that it position itself to take advantage of this and future opportunities,” Chris Adsett says.
“Ideally this would be a 51% local ownership situation that would see the company’s Mongolian management team continue to grow the business backed up by Techenomics’ intellectual property and the technology we use for predictive maintenance services.
“However, we are happy to consider various other options to increase Mongolian investment in the business.
“This could be through an investor, trade sale or a listed company in Mongolia taking an interest.”
Chris Adsett says the process of seeking investment has begun with initial negotiations taking place.
The company has secured Mongolian legal representation led by lawyer Enkhbat Batsukh, of MDSKhanLex, to help advance its plans.
Techenomics Mongolia operates a laboratory in Ulaanbaatar, which gained ISO 17025 accreditation in 2015, becoming the first laboratory in the country to achieve this standard. It ensures that clients always receive accurate, state-of-the-art analysis of their lubricant samples.