Wah Seong buys Germany-based firm for €19.5 million

PETALING JAYA: Wah Seong Corp Bhd is acquiring 100% equity interest in Germany-based firm mutares Holding-16 AG (MH-16) for €19.5 million (RM91.7 million) cash.
In a filing with Bursa Malaysia yesterday, Wah Seong said its indirect wholly-owned subsidiary Wasco Coatings Germany GmbH (WC Germany) entered into a share purchase agreement with mutares AG for the acquisition.
“The acquisition would enable WC Germany to use the existing plant and machinery in Mukran, Germany, to perform its pipe-coating activities for the purposes of the Nord Stream 2 project,” it said.
Nord Stream 2 is a planned pipeline through the Baltic Sea, which will transport natural gas over 1,200km from the world’s largest gas reserves in Russia. It involves two parallel 48-inch lines, each starting from southwest of St Petersburg and ending at Greifswald on the German coast.
On Sept 6, 2016, Wah Seong’s indirect wholly-owned subsidiary Wasco Coatings Europe BV entered into a contract with Nord Stream 2 AG (NS2 AG) for the provision of concrete weight coating and storing of pipes for the Nord Stream 2 project at a contract value of €600 million.
The €19.5 million purchase price takes into consideration the requirements of the Nord Stream 2 project and will be funded through project financing by NS2 AG. The acquisition is expected to have positive effect on the earnings of Wah Seong for the financial year ending Dec 31, 2017.