Has WMC taken the back seat?

There is one thing I realised these days when reading about Welli-Multi Corporation(WMC). And that is Hadhari Cattle Industry Malaysian Sdn. Bhd. is leading it by the hidung. The old is passed and the new has come to stay. The old gang of Four Seasons are selling out their stocks as quick as they can. Debtors have been told to cough up their debts pronto or face the consequences in court. The doubtful receivables must be paid unless those owing parties have bankrupted.

I think certain parties have already been lined up to take the stocks off their hands. This is the consolidation period for WMC as the shares hovered around the RM1.60 band. A good time to add more to your portfolio.

Today, Hadhari again has a news item in the business pages of the NST. Dr. Rashid Tan Abdullah is the man to watch. He announced that Hadhari is investing RM130 million to set up the second integrated halal meat processing facility in China to meet growing demand. This second plant is its second major investment after the first plant which they invested 8 years ago. It cost them RM100 million then for that plant which supplies halal meat to major Chinese cities beside exporting to the Middle-east. The annual revenue is RM1 billion. As part of this new investment, the State Government of Chifeng has awarded 405 hectares of land to its subsidiary Hadhari Cattle Chifeng Pte. Ltd. The land will be used to set up an abattoir with a 400 heads per day capacity and cattle feedlot facilities to process 300,000 heads annually.

Back home, Hadhari has been operating the country's sole integrated halal meat processing facility at Paya Pahlawan, Jitra since August 2006.This is the largest such plant in South-east Asia.

So is WMC hiding in the shadows again? No, it has certainly not. It has just signed an agreement with the Inner Mongolian Government on 8 th July 2007 to cooperate in energy, mining,metals, roads and sundry developments. WMC, as announced, is now negotiating to buy over at least 30 % of Chi Feng Dasi Basic Industry, currently traded on Shenzhen. Dasi's main involvement are in mining and metals(silver and gold) as well as in tolled road developments in Inner Mongolia. It's revenue is RM1 billion yearly. Expect Dasi to buy into WMC sometime as well in the future, possibly through a share swap.

All these news are part of the event management programme to bring up the Hadhari name when it eventually takes over full control of WMC. I suppose some intricate financing packaging and number crunching are in the works for possible share swaps and a potential rights issue to restructure and strengthen WMC.

Which ever way you look at it, WMC is the company to watch out for as it will undoubtedly spearhead the halal hubs in all the states starting with the NCER.

Like the current Transformers movie, WMC will transform................

Heartsong