04/02/2012 (Bernama) - 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 Friday, 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.