WTK SHAREHOLDERS APPROVE STAKE ACQUISITION IN THREE COMPANIES FOR RM555 MLN

KUALA LUMPUR, Jan 29 (Bernama) -- WTK Holdings Bhd has received unanimous shareholders’ approval to acquire equity interests in three companies from related party WTK Realty Sdn Bhd for RM555 million.

In a statement today, the Sarawak-based diversified group said its shareholders approved the proposed acquisition of 100 per cent equity interest in Desacorp Sdn Bhd, as well as 70 per cent equity interest in both Imbok Enterprise Sdn Bhd and WTK Oil Mill Sdn Bhd.

WTK Holdings said the acquisitions will strengthen the operating scale of its plantation business and are expected to be completed by the second quarter of 2026.

“Upon completion, WTK’s total planted oil palm area will increase by 82.6 per cent from 17,420.59 hectares to 31,809.86 hectares, supported by favourable crop age profiles.

“The inclusion of a dedicated in-estate mill is also expected to further enhance the group’s supply chain efficiency and operational integration,” it said.

WTK chairman Tan Sri Sulong Matjeraie said following the exit from loss-making timber operations as part of the group’s business restructuring, the group is now focusing on growing its plantation division as the core business segment, underpinned by stronger earnings quality and more sustainable long-term prospects.

“Our immediate priority will be the execution and orderly integration of the acquired assets into the group’s existing operations.

“This expansion of the upstream oil palm footprint, together with the downstream integrated milling capacity, is expected to further improve WTK’s production visibility, processing capability and cost optimisation,” he said.

Sulong said that the divestment of the timber operations means the group no longer has exposure to timber-related impairments or operating losses, which is expected to result in a more stable and improved earnings profile.

“The proposed acquisitions are earnings accretive, with their financial results to be consolidated into the group, further strengthening the plantation division as the group’s key earnings driver,” he added.

-- BERNAMA