Sarawak-based diversified group W T K Holdings Berhad (“WTK” or “the Group”) has announced that its wholly owned subsidiaries, Biogrow City Sdn Bhd (“BCSB”) and Bioworld Synergies Sdn Bhd (“BSSB”), have entered into conditional share sale agreements for the proposed disposal of their respective interests in Biogrow City Plantations Sdn Bhd (“BCPSB”) to Rimbun Temasek Sdn Bhd for a total cash consideration of RM90.0 million (“Proposed Disposals”).
BCPSB is principally involved in the planting and management of an oil palm plantation, as well as the operation and management of a palm oil mill in Limbang, Sarawak.
Its assets comprise five parcels of plantation land measuring 3,487 hectares, of which approximately 1,314 hectares are planted, and one 30 metric tonnes (MT) per hour crude palm oil mill.
The Proposed Disposals comprise:
- the disposal by BCSB of 8.5 million ordinary shares, representing an 85.0% equity interest in BCPSB, for a consideration of RM65.6 million; and
- the disposal by BSSB of 24.4 million redeemable preference shares in BCPSB, for a consideration of RM24.4 million.
The Proposed Disposals are expected to result in an estimated gain of RM72.7 million to the Group.
The Proposed Disposals form part of WTK’s ongoing efforts to unlock value and enhance its asset portfolio, improving resource allocation across the Group.
Biogrow’s plantation and mill are located far from WTK’s main plantation operations in Miri and Bintulu, resulting in lower economies of scale, higher transportation costs, and difficulties in recruiting manpower for the estate.
In addition, the plantation’s steep and challenging terrain contributed to low tree standing and subpar fresh fruit bunch yields. Meanwhile, the palm oil mill has also been operating below capacity.
Executive Director of WTK, Francis Lai, said:
“The Proposed Disposals provide the Group with an opportunity to unlock value from underperforming assets that are also geographically distant from our main plantation clusters.
“For clarity, plantation remains a key business segment for WTK. However, Biogrow’s plantation assets have been challenging to optimise due to its location, terrain, and 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 RM90.0 million cash proceeds 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 added.
“As we move forward, we continually assess our asset base with the aim to unlock value from non-core or sub-optimal assets while seeking out earnings-accretive acquisition targets.
“With concerted efforts to optimise our plantation portfolio, coupled with the good progress from our food and tapes segments, we are confident of building a stronger, more resilient Group capable of delivering consistent returns to shareholders,” Francis Lai concluded.
The Proposed Disposals are not subject to the approval of WTK’s shareholders.
Barring any unforeseen circumstances and subject to the fulfilment of the relevant conditions, the transaction is expected to be completed in the fourth quarter of 2026.
