Wah Seong invests in Congo oil palm

KUALA LUMPUR: Wah Seong Corp Bhd's (WSC) direct
wholly-owned unit, WS
Agro Industries Pte Ltd, has signed a subscription and shareholders'
agreement with Silvermart Resources Inc and Giant Dragon Group.

In
a filing to Bursa Malaysia today, WSC said the agreement was for the
subscription of up to 51,000 ordinary shares of US$1 each, representing
51 per cent of the total enlarged issued and paid-up share capital of
Atama Resources Inc (ARI).

It said the proposed subscriptions
with the two companies will be held in two stages for the aggregate
subscription amount of up to US$25 million.

Investment holding
company, ARI, wholly-owned Atama Plantation SARL (APS), a Congo-based
plantation and industrial processing, agro industry and marketing of
finished and semi-finished products.

WSC said APS has been
granted express authorisation to occupy 470,000 hectares of federal land
for the development of oil palm plantation and industrial complexes by
the government of Congo.

"The consession granted is for 30
years. Planning and feasibility for the project have been done and
180,000ha have been identified suitable for the cultivation of oil palm.

"Based on this acreage, it is envisaged that the complete development will take over 15 years in 10 phases," it said.

It
said the proposed subscription was in line with the group's expansion
plans into the oil palm plantation as a source of sustainable and
recurring income.

"It is also an upstream integration for WSC
group of companies because it has already been in the business of
supplying, specialised equipment like boilers, steam turbine and oil
room centrifuges to palm oil mill operators globally," it said.

WSG
said the proposed subscription would not have any effect on its issued
and paid-up share capital as the investment will be satisfied by cash.
--
BERNAMA