WTK buys oil palm estate in Miri from Rimbunan Sawit for RM85mil

KUALA LUMPUR: WTK Holdings Bhd is buying plantation land in Miri from Rimbunan Sawit Bhd for RM85mil cash, expanding its oil palm planted area by 39% from 8,662 ha to 12,052 ha.

"The property is strategically located adjacent to the group’s estates, allowing the group to have logistic and accessibility advantages as well as benefit from economies of scale through operational synergies," WTK said in a filing with Bursa Malaysia today.

"The board firmly believes that the proposed acquisition represents a strategic investment which will expand the group’s plantation activities and is expected to contribute positively to the group’s future prospects and earnings."

WTK's wholly owned subsidiary on Wednesday entered into a sale and purchase agreement with Lumiera Enterprise Sdn Bhd to acquire the parcel of land with oil palm plantation situated at Along Batang Baram for RM85mil cash.

Lumiera is a wholly owned subsidiary of Rimbunan Sawit.

The 4,698.2 ha leasehold land is located within Miri Division. The lease will expire on March 14, 2061.

WTK said a total of 3,390 ha of the land has been planted between 2012 and 2014, while another 1,123 ha is considered as unplantable area.

The land was valued at RM95mil by VPC Alliance (Sarawak) Sdn Bhd.

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WTK , Rimbunan Sawit , oil palm


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