PETALING JAYA: WTK Holdings Bhd
is disposing of its entire stake in Sarawak-based timber company, Song Logging Co Sdn Bhd, to Huang Qian Wen for RM23.5mil.
In a filing with Bursa Malaysia, WTK said it is undergoing a strategic shift to focus on more commercially sustainable and profitable business segments.
“Given the challenges faced by the timber sector, the group aims to prioritise its plantation and food operations, which have demonstrated stronger growth potential and profitability in recent years.
“Divesting from non-core timber assets allows the group to streamline its focus and allocate resources more effectively toward sectors with long-term growth prospects.
WTK said the timber segment has experienced a declining revenue contribution over recent financial years due to several factors, including soft market demand and stricter operational requirements related to timber certifications.
“These challenges have reduced the timber segment’s financial viability, making its continued operation less strategic for the group’s future growth.”
