WTK acquires 15% stake in Durafarm for RM28.3mil


KUALA LUMPUR: WTK Holdings Bhd has proposed to acquire a 15% equity interest in Durafarm Sdn Bhd for RM28.3mil cash.

In a filing with Bursa Malaysia, WTK said its wholly-owned subsidiary, BioFarm Venture Sdn Bhd has entered into a share sale agreement (SSA) with Datuk Robert Lawson Chuat to acquire 1.57 million shares in Durafarm, representing 11.25% equity interest for RM21.4mil.

It also entered into a SSA with Edwin Ak Banta for the acquisition of 525,000 ordinary shares in Durafarm, representing 3.75% equity interest for RM7.08mil.

Durafarm is involved in the business of planting and management of an oil palm plantation in Betong and Sri Aman, Sarawak with the principal market for the sale of fresh fruit bunches (FFB) solely in the Sarawak region.

The main assets of Durafarm comprise of 19 parcels of plantation land measuring a total of approximately 5,040.97 hectares of land in Sarawak), of which approximately 4,482.40 hectares have been fully planted with oil palm trees and another 395.48 hectares are under development for replanting.

WTK said the acquisition will be funded via a combination of internally generated funds of WTK Group and bank borrowings.

“The proposed acquisitions are expected to allow WTK Group to account for additional profitability and cash flow from the acquisition of an additional 15.0% equity interest in Durafarm,” it said.

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