PETALING JAYA: WTK Holdings Bhd
is expanding its plantation footprint in Sarawak through related party acquisitions worth RM555mil, boosting its planted area by 68.1%, according to its filing with Bursa Malaysia.
Together with its wholly-owned unit BioPalm Venture Sdn Bhd, the group signed conditional share sale agreements with WTK Realty Sdn Bhd — a major shareholder of WTK with a 13.88% stake — to acquire stakes in plantation and milling companies.
Under the agreements, WTK will acquire the entire equity in Desacorp Sdn Bhd for RM230mil, while BioPalm Venture will purchase 70% stakes in both Imbok Enterprise Sdn Bhd and WTK Oil Mill Sdn Bhd for RM290mil and RM35mil, respectively.
WTK said the acquisitions will expand its planted area from 21,129.59 hectares (ha) to 35,518.86 ha, an increase of 14,389.27 ha or 68.1%, with all estates and palm oil mills Malaysian Sustainable Palm Oil certified.
“Given the scarcity of sizable and suitable land for oil palm cultivation in Malaysia, the proposed acquisitions present a valuable opportunity to secure land banks that will contribute to WTK’s long-term production growth,” the group noted.
WTK said the acquisitions will be completed “free from all encumbrances and together with all rights and benefits attached.”
The RM555mil consideration will be funded via RM166.5mil or 30% in internally generated funds and RM388.5mil or 70% through bank borrowings and sukuk financing.
To note, WTK had in January established an Islamic medium-term notes programme based on the Shariah principle of Wakalah Bi Al-Istithmar with a tenure of up to 30 years.
Desacorp owns 5,228.81 ha of plantation land in Mukah, with 4,543.30 ha planted and more than 90% of the planted palms in prime mature and mature stages.
Meanwhile, Imbok Enterprise holds 11,020.10 ha in Bintulu and Miri, with 9,845.97 ha planted, of which over 80% of the palms are immature and young mature and 16% are above 25 years old.
“As the palms enter maturity and move into a higher yielding age bracket, Imbok Enterprise plantation estate’s oil palm yields are poised to further improve and the growth momentum in their earnings is expected to continue in the future financial years,” WTK said.
On milling, WTK said acquiring WTK Oil Mill will enhance efficiency as the facility is located within the Imbok estate.
“This will improve the overall efficiency of WTK’s supply chain by securing a dedicated milling facility for its expanding plantation business,” it noted.
The acquisitions are expected to be completed by the first quarter of 2026.
