KUALA LUMPUR: Sarawak-based diversified group WTK Holdings Bhd
’s units Biogrow City Sdn Bhd (BCSB) and Bioworld Synergies Sdn Bhd (BSSB) have proposed to sell their interest and preference shares in Biogrow City Plantations Sdn Bhd (BCPSB) to Rimbun Temasek Sdn Bhd for RM90 million.
In a Bursa Malaysia filing today, it said the proposed disposals comprise BCSB’s disposal of 8.5 million ordinary shares, representing an 85 per cent equity interest in BCPSB, for RM65.6 million, and BSSB’s disposal of 24.4 million redeemable preference shares in BCPSB for RM24.4 million.
"The proposed disposals are expected to result in an estimated gain of RM72.7 million to the group,” it said, adding that BCPSB will cease to be a subsidiary of BCSB upon completion by the fourth quarter of 2026.
WTK executive director Francis Lai said the proposed disposals provide the group with an opportunity to unlock value from underperforming assets that are geographically distant from its main plantation clusters, as plantations remain a key business segment for WTK.
However, he said Biogrow’s plantation assets have been challenging to optimise due to their location, terrain, and the limited availability of surrounding third-party fresh crops to support mill utilisation.
"Hence, the proposed disposals will allow us to further enhance our plantation portfolio performance, especially following the earlier addition of two oil palm plantations and one palm oil mill in April 2026 that have better yields and production output.
"The proceeds of RM90 million will strengthen our balance sheet, improve our financial flexibility and provide additional working capital as we continue to build a more resilient and sustainable earnings base,” he said. - Bernama
