PETALING JAYA: WTK Holdings Bhd
plans to sell three adjoining oil palm estates in Miri, Sarawak for RM221.5mil cash as part of a portfolio optimisation exercise aimed at improving operational efficiency and strengthening its financial position.
The proposed disposals involve its stakes in Positive Deal Sdn Bhd, the Biogreen Estate and the Borneo Estate, which is expected to generate an estimated net pro-forma gain of RM86.6mil.
The disposal price represents a 5.7% premium, or RM11.9mil, above the estates' aggregate independent valuation, it said in a statement to Bursa Malaysia.
Executive director Francis Lai said the estates were located about 90km from the group's nearest palm oil mill, resulting in higher transportation costs and crop quality deterioration due to prolonged transit times.
With the oil palms averaging about 14 years in age, the estates would also require substantial replanting investment in the coming years, the company said.
"We will continue to assess our asset base with the aim of unlocking value from non-core or less integrated assets, while allocating capital towards opportunities that complement our existing operations and support sustainable long-term earnings growth," he said.
