WTK Plans To Acquire 3 Companies In RM555 Mln Oil Palm Expansion Plan
KUALA LUMPUR, Sept 4 (Bernama) -- WTK Holdings Bhd and its wholly-owned subsidiary, BioPalm Venture Sdn Bhd, are mulling several acquisitions worth RM555 million.
WTK said in a filing with Bursa Malaysia today that the proposed acquisitions are in line with the group’s overall strategy to expand its presence in the oil palm cultivation business in Sarawak, which includes upstream oil palm plantation activities and palm oil mill operations.
The first agreement, with WTK Realty, involves acquiring seven million ordinary shares in Desacorp Sdn Bhd, representing 100 per cent equity interest, for RM230 million.
The second acquisition, via BioPalm Venture and WTK Realty, is for 14 million shares in Imbok Enterprise Sdn Bhd, representing a 70 per cent stake, valued at RM290 million.
The third proposal will see BioPalm Venture and WTK Realty acquire 3.5 million shares in WTK Oil Mill Sdn Bhd, also representing 70 per cent equity interest, for RM35 million.
“Upon completion of the proposed acquisitions, Desacorp will become a wholly-owned subsidiary of WTK, while Imbok Enterprise and WTK Oil Mills will be 70.0 per cent-owned subsidiaries of BioPalm Venture,” WTK said.
Moving forward, WTK said the inclusion of Desacorp as a wholly-owned subsidiary, as well as Imbok Enterprise and WTK Oil Mills, will enhance WTK Group’s financial strength as their financial results will be fully consolidated into WTK’s accounts.
“This is in line with the Malaysian Financial Reporting Standards, bolstering the group’s asset base and revenue streams, profitability and cash flow generation, and long-term earnings visibility.
“Given the strong global demand for palm oil, the group is optimistic about the plantation division’s ability to contribute sustainable growth and profitability in the years ahead,” it said.
The proposed acquisitions are expected to be completed by the first quarter of 2026.
-- BERNAMA