SIBU: Sarawak-based diversified group WTK Holdings Bhd’s wholly-owned subsidiaries, Towering Yield Sdn Bhd, Bioworld Synergies Sdn Bhd, Biogreen Success Sdn Bhd and Borneo Agro-Industries Sdn Bhd signed a conditional agreement with Trinity Capital Resources Sdn Bhd for the disposal of three adjoining oil palm plantation estates in Miri, Sarawak, for RM221.5 million.
The disposals comprise three separate transactions.
The first transaction involves the disposal of Towering Yield’s 1.95 million ordinary shares, representing 65.0% equity interest (being WTK’s entire equity interest) in Positive Deal Sdn Bhd, together with Bioworld’s 23.18 million redeemable preference shares, for RM27.0 million.
Located along Batang Baram, Miri, the Positive Deal Estate has a total land area of 2,148.7 hectares (ha), of which 1,580.8 ha are planted.
The second transaction involves Biogreen’s disposal of the Biogreen Estate, a plantation located in the Batang Baram District, Miri, together with its assets, to Trinity Capital for RM145.2 million.
The Biogreen Estate spans 4,698.2 ha, of which 3,422.8 ha are planted.
The final transaction involves Borneo’s disposal of the Borneo Estate, a plantation located in Kuala Baram, Miri, together with its assets, to Trinity Capital for RM49.3 million.
The Borneo Estate spans 849.6 ha, of which 791.5 ha are planted.
Collectively, the three estates span approximately 7,697 ha, of which roughly 5,795 ha are planted.
The disposals are expected to result in an estimated net pro forma gain of RM86.6 million to the group.
The RM221.5 million represents a 5.7% premium, or RM11.9 million, over the aggregate independent valuation of the three estates.
By disposing of the three estates to a single purchaser, the group can unlock additional value from operational synergies and economies of scale that the purchaser may realise.
WTK executive director Francis Lai said the disposals represent a strategic opportunity for the group to realise value from plantation assets that are less aligned with its current operations.
“Plantation remains an important and core business segment for the group, and this exercise forms part of our ongoing efforts to strengthen the quality, efficiency and resilience of our plantation portfolio, particularly as we continue to channel resources towards estates that are better integrated with our core operating regions.
“The RM221.5 million in proceeds will provide us with greater financial flexibility to support plantation development, replanting programmes and ongoing estate maintenance across our plantation operations, with RM185.6 million earmarked for working capital, RM27.0 million to repay borrowings, and the remainder for estimated expenses and taxes.
“This will further strengthen our balance sheet and allow us to focus our resources on assets that deliver stronger operational performance and longterm returns.
“As we move forward, 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.
A key consideration for WTK behind the disposals is the geographical positioning of the three estates.
Located at the northern tip of Sarawak, approximately 90km from the group’s nearest palm oil mill, the estates have incurred higher external transportation costs and experienced deterioration in crop quality due to prolonged transit times.
As a result, the estates are less integrated with the group’s milling infrastructure compared with its other plantation assets.
In addition, the oil palms across the three estates have reached an average age of approximately 14 years and will require significant replanting investment in the coming years.
Given their location, the group believes those investments would be better channelled towards higher-performing estates within its core operating regions.
The disposals form part of WTK’s ongoing strategy to optimise and rebalance its plantation portfolio by concentrating resources on assets that are more closely aligned with its core operating regions.
Following completion of the disposals, WTK will continue to operate approximately 26,421 ha of planted oil palm across its remaining estates.
Together with the group’s recent acquisitions of two oil palm plantations and one palm oil mill in April 2026, as well as the disposal of sub-optimal assets in Miri and Bintulu, which was announced in May 2026, the disposals are expected to enhance the overall quality and connectivity of WTK’s plantation portfolio, while supporting a more efficient operating base.
The disposals are subject to the approval of WTK’s shareholders at an extraordinary general meeting to be convened, as well as approvals from the relevant authorities.
The exercise is expected to be completed in the first half of 2027.
