Sunday, January 17, 2010

Wah Seong keen to invest in Italy’s Socotherm

OIL and gas services provider Wah Seong Corp Bhd is interested in buying a stake in troubled Italian pipe-coating company Socotherm, a Wah Seong executive said yesterday.

“Yes, there is some interest on our part to look at acquiring a stake in this company (Socotherm) but we are not yet at the stage of talking about numbers,” Wah Seong deputy managing director Giancarlo Maccagno said.

An unsourced report in Italian business weekly Il Mondo said yesterday Wah Seong, Malaysia’s third-largest oil and gas services provider, is ready to invest ?50 million-?100 million (?1 = RM4.98) to help save Socotherm.

“The ?50 million-?100 million is pure speculation on the part of the writer. It’s far too early to talk about numbers and what equity is available to us,” Maccagno said.
At the start of August, Socotherm, which specialises in coatings for petrol, gas and water pipes, filed for creditor protection.

In the first half of the year, Socotherm reported a net loss of ?57.2 million, widening from ?14.9 million a year earlier, , with sales of ?84.2 million, down 42.1 per cent. Socotherm shares have been suspended from trade since the start of August. — Reuters

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