KUALA LUMPUR: The Wah Seong Corp group is eyeing a bigger business in Sabah through a proposed joint venture (JV) between unit Syn Tai Hung Trading Sdn Bhd (STHT) and Kota Kinabalu-based ready-mixed concrete supplier Sabaconcrete Sdn Bhd.
The Kuala Lumpur-headquartered oil & gas and industrial service provider said the JV company, in which STHT would own a 70% stake, would help the group to expand and carry out its business of trading of building materials, industrial equipment and machinery in the state.
According to Sabaconcrete’s website, one of its substantial shareholders is Sego Holdings Sdn Bhd, the family holding company of former Sarawak state secretary Tan Sri Hamid Bugo.
Wah Seong said the board of the proposed new JV company would have up to five directors, of whom three would be nominees of STHT.
It said the JV agreement signed with Sabaconcrete on Thursday was not expected to have any material effect on the group’s earnings and net assets for the financial year ending Dec 31, 2016.
Wah Seong shares gained half a sen to close at 74.5 sen on Thursday.
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