Tuesday, December 28, 2010

Wah Seong subsidiaries to sell stakes in Drilbits, Driltools

KUALA LUMPUR: WAH SEONG CORPORATION BHD []'s wholly-owned direct and indirect subsidiaries Wah Seong International Pte Limited (WSIPL) and Wasco E&P Services Limited (Wasco E&P Services) are disposing their 60% equity stakes in Drilbits International Private Ltd and Driltools International FZCO as part of Wah Seong's strategy to streamline and rationalise its core businesses and to divest non-core business.

Wah Seong said on Tuesday, Dec 28 that WSIPL and Wasco E&P Services had entered into two separate sale and purchase agreements to dispose their stakes in DrilBits and Driltools respectively.

WSIPL holds 2.18 million shares (60%) of the equity interest in DrilBits and Wasco E&P Services holds 24 shares (60%) of the equity interest in DrilTools.

The remaining 40% equity interest in both DrilBits and DrilTools are held by businessman Rajan Abraham, who is an Indian national.

WSIPL, Wasco E&P Services and Rajan are disposing of their shares in DrilBits and DrilTools to Omni Oil TECHNOLOGY [] Holdings Limited and Omni Oil Technology Holdings Ltd.

Omni Oil Technology Holdings Limited is a Jebel Ali offshore free zone company.

Wah Seong said WSIPL's portion from the proposal disposal was US$2.7 million while Wasco E&P Services' was US$4.8 million.

It said the disposals are expected to be completed in the first quarter of 2011.


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