Wah Seong to Acquire Pipeline Company

Wah Seong Corporation's, Wah Seong International unit, has entered into a Share Sale Agreement with Acma Engineering & Construction Group Limited to acquire a 70 percent equity stake in Delco Australia Pty Ltd for AUD$5.6 million.

DELCO specializes in providing turnkey solutions for pipeline and plant projects including ongoing maintenance and operations support to the oil and gas and mining industries. Among the major services provided by DELCO are pipeline construction, pipeline coating refurbishment, pipeline operations and maintenance and construction of compressor station or plant.

The acquisition of DELCO is expected to contribute positively to the performance of WSC's oil and gas division. Besides being synergistic to existing operations and enhancing the future growth of WSC's non-pipe coating oil & gas businesses, DELCO would also enable WSC group to provide a more comprehensive package of infrastructure services to the fast growing global oil and gas industry.

This acquisition is subject to inter alia the approvals of the relevant authorities and the shareholders of ACMA. Upon completion, WSIPL will own 70 percent of DELCO while ACMA will hold the remaining 30 per cent shares.

WSIPL has options to increase its shareholding in DELCO by a further 18 percent under a Call and Put Option Agreement to be entered into with ACMA. WSC expects the acquisition to be completed in July 2005.

Explained Mr. Chan Cheu Leong, Managing Director and Group CEO of WSC, "We are delighted with the acquisition which forms part of our overall strategy to transform WSC into a global oil and gas player. As a member of the WSC Group, DELCO could leverage on WSC's extensive global network and infrastructure to extend its presence outside

Australia, for example within the ASEAN region, the Middle-East and Africa. At the same time, DELCO could provide a platform for WSC to enhance its presence in the pipeline business which has tremendous future due to more pipelines being built in these regions."