Wah Seong Corporation through its subsidiary Wasco Engineering Group Limited has entered into a Share Sale Agreement with MMA Offshore Asia Pte. Ltd for the acquisition of 100% equity interests in its companies for USD15 million or RM65.3 million.
Upon completion, PT Jaya Asiatic Shipyard, a subsidiary of MMA Offshore Holdings and MMA Offshore Investments will also become an indirect wholly-owned subsidiary of Wasco. PT Jaya owns land and buildings granted by the Batam Island Industrial Region Development Authority comprising three plots of land.
MMA Offshore Asia is principally engaged in offshore marine services while MMA Offshore Holdings is an investment holdings company. PT Wasco of PTWei is principally engaged in the provision of engineering, design, fabrication and construction services for the oil and gas industry. PTWEI is a direct 99.54% owned subsidiary of WS Engineering Technologies Pte. Ltd. WETPL is a direct 91.99% owned subsidiary of WEGL. WETPL is principally involved in the engineering and fabrication of oil and gas systems and equipment
The acquisition will give WSC leverage in the Batam Yard as it provides an excellent opportunity for the Group to expand its fabrication facilities with an upgraded loadout capability and a jetty capable of receiving ocean-going vessels. The Batam Yard with and its upgraded loadout capabilities will allow the Company to bid for, execute and deliver larger fabrication projects globally.