KUCHING: WTK Holdings Bhd
is set to become a bigger plantation player in Sarawak as the impending completion of the proposed acquisition of two oil palm estates will raise the group’s total planted area by 14,389 ha (82.6%) to about 31,810 ha.
The company obtained the approval of its shareholders at an EGM on Jan 29 on the proposed acquisitions of a 100% equity interest in Desacorp Sdn Bhd, and 70% equity interest each in Imbok Enterprise Sdn Bhd and WTK Oil Mill Sdn Bhd by wholly-owned subsidiary, BioPalm Venture Sdn Bhd, for a total of RM555mil in cash.
The acquisitions will be financed by internally generated funds (RM166.5mil or 30%) and bank borrowings/sukuk financing (RM388.5mil or 70%). As at Sept 30, 2025, WTK group had total cash and bank balances of RM230.3mil. It expects the completion of the proposed acquisitions by the second quarter of 2026 (2Q26).
In 2025, WTK made another major acquisition when it forked out about RM188.7mil to buy 100% equity interest in Durafarm Sdn Bhd, which owns 5,041 ha of plantation land, of which 4,137 ha was fully planted and 747 ha under development for replanting.
Desacorp and Imbok own oil palm estates predominantly in Mukah (central Sarawak), Bintulu and Miri (northern Sarawak).
Desacorp plantation estate has total planted area of 4,543 ha (out of a total landbank of 5,229 ha) and Imbok 9,846 ha (11,020 ha). For Desacorp, more than 90% of the oil palms are prime mature and mature whereas more than 80% of the oil palms in Imbok are immature and young mature.
In the financial year ended Sept 30, 2024 (FY24), Desacorp recorded a fresh fruit bunch (FFB) production volume of 95,866 tonnes (FY23: 90,465 tonnes), while Imbok FFB output in FY24 was 92,847 tonnes (116,219 tonnes before).
Upon completion of Desacorp and Imbok, WTK group anticipates a steady increase in FFB production and yields, according to chairman Tan Sri Sulong Matjeraie in a circular to shareholders on the proposed acquisition.
He said the anticipated rise in FFB production will be supported by the relatively young age profile of Desacorp and Imbok plantations as the palm trees attain maturity and move into the higher-yield bracket going forward.
Sulong said the acquisitions of Desacorp and Imbok will expand the group’s oil palm planted area to about 31,810 ha from 17,420 ha, representing an increase of 14,389 ha (82.6%).
“This expansion aligns with the group’s long-term strategy of strengthening our footprint in the plantation sector (including upstream oil palm plantation activities and palm oil mill operation), which has become a core revenue driver for the group.
“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 the group’s long-term production growth. The group will become a stronger player in the plantation industry, with a larger operational scale and improved efficiency,” he added.
With the group’s total planted area increased to 31,810 ha, the area under prime mature (nine to 14 years) will be 9,747 ha (30.64%). young mature (four to eight years) 8,384 ha (26.36%), immature (zero to three years) 7,188 ha (22.6%), old (19 to 25 years) 56 ha (0.17%) and extended (more than 25 years) 1,575 ha (4.95%).
Sulong said WTK intends to carefully manage the 1,575 ha extended palm trees in Imbok plantation to maximise their remaining productive potential as these trees, which typically yield lower FFB, can still contribute meaningfully to short-term harvests if properly maintained.
WTK plans to implement targeted agronomic practices such as selective pruning, fertilisation and pest management to sustain productivity from these trees while monitoring overall yield performance.
“Over the medium term, WTK will adopt a phased replanting strategy, gradually replacing the least productivity extended palms with new, high-yielding seedlings.
“This approach balances immediate FFB production with long-term plantation renewal, ensuring a smooth transition from extended to mature palms without disrupting cash flow. By strategically managing these extended trees, WTK aims to optimise both short-term revenue and the long-term sustainability of the plantation,” he added.
Sulong said the inclusion of Desacorp as a wholly-owned subsidiary as well as Imbok and WTK Oil Mill as 70%-owned indirect subsidiaries of WTK will enhance the group’s financial strength, bolstering the group’s asset base and revenue streams, profitability and cash-flow generation, and long-term earnings visibility.
WTK group is currently undergoing a strategic shift to focus on more commercially sustainable and profitable businesses, specifically plantation and frozen food, from its traditional core business in timber which had performed poorly in recent years.
According to the company’s management, the group’s 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 certification.
These challenges have reduced the timber business’s financial viability, making its continued operation less strategic for the group’s future growth.
On Jan 1, 2025, WTK ceased its loss-making plywood manufacturing operations after decades, followed by disposals of non-performing wholly-owned timber subsidiaries involved in logging, sales of logs and timber products
In September, WTK sold Piramid Intan Sdn Bhd for RM16mil and Immense Fleet Sdn Bhd for RM24.35mil or a total of RM40.35mil. On Dec 5, 2025, WTK completed the disposal of another timber subsidiary – Song Logging Company Sdn Bhd – for RM23.5mil cash.
