PETALING JAYA: WTK Holdings Bhd
is expanding its plantation footprint in Sarawak through related party acquisitions worth RM555mil, boosting its total planted hectares of oil palm under ownership 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 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 sizeable 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.”
