KUALA LUMPUR (Feb 3): WAH SEONG CORPORATION BHD [] is venturing into Congo’s PLANTATION []s sector, with the possibility of planting oil palm trees there after its proposed acquisition of a 51% stake in Atama Resources Incorporated for US$25 million.
Wah Seong said its unit WS Agrco Industries Pte Ltd had signed the agreement to acquire the stake in Atama Resources, which had a 30-year concession from the Republic of Congo to cultivate crops including oil palm on 470,000 ha of federal land.
Wah Seong would acquire the Atama Resources stake from Silvermark Resources Inc and Giant Dragon Group Bhd Ltd.
It said the planning and feasibility studies for the project had been carried out and 180,000hs had been identified as highly suitable for oil palm cultivation.
“Based on this acerage, it is envisaged the complete development will take over 15 years in 10 phases, with planting to commence towards the second quarter of 2012,” it said, adding the finale land area could exceed 180,000 ha.
Wah Seong said the acquisition of the stake was in line with the group’s expansion plan into the oil palm plantations, which would be a source of sustainable and recurring income for the group.
“It is also an upstream integration for WSC, because through its subsidies, it has already been in the business of supplying specialised equipment like boilers, steam turbine and oil room centrifuges to palm oil operators both locally and overseas, including Africa,” it said.
Wah Seong said its unit WS Agrco Industries Pte Ltd had signed the agreement to acquire the stake in Atama Resources, which had a 30-year concession from the Republic of Congo to cultivate crops including oil palm on 470,000 ha of federal land.
Wah Seong would acquire the Atama Resources stake from Silvermark Resources Inc and Giant Dragon Group Bhd Ltd.
It said the planning and feasibility studies for the project had been carried out and 180,000hs had been identified as highly suitable for oil palm cultivation.
“Based on this acerage, it is envisaged the complete development will take over 15 years in 10 phases, with planting to commence towards the second quarter of 2012,” it said, adding the finale land area could exceed 180,000 ha.
Wah Seong said the acquisition of the stake was in line with the group’s expansion plan into the oil palm plantations, which would be a source of sustainable and recurring income for the group.
“It is also an upstream integration for WSC, because through its subsidies, it has already been in the business of supplying specialised equipment like boilers, steam turbine and oil room centrifuges to palm oil operators both locally and overseas, including Africa,” it said.
