SIBU: Sarawak-based diversified group WTK Holdings Bhd has obtained shareholders’ approval for the acquisition of Desacorp Sdn Bhd, a 70.0% stake in Imbok Enterprise Sdn Bhd, and a 70.0% stake in WTK Oil Mill Sdn Bhd from a related party, WTK Realty Sdn Bhd, for RM555.0 million.
WTK expects the acquisitions to increase the scale of its plantation operations.
Upon completion, WTK’s total planted oil palm area will increase by 82.6% from 17,420.59 ha to 31,809.86 ha, 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.
Speaking after the company’s annual general meeting, WTK chairman Tan Sri Panglima Sulong Matjeraie said the shareholders’ approval reflects their understanding of and confidence in WTK’s strategic direction.
“Following the exit from loss-making timber operations as part of the group’s business restructuring, we are now focused on growing our plantation division as the core business segment, underpinned by stronger earnings quality and more sustainable long-term prospects.
“The execution and orderly integration of the acquired assets into the group’s existing operations will be our immediate priority.
“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.
The outlook for the plantation sector remains positive.
According to the Malaysian Palm Oil Board (MPOB), crude palm oil (CPO) prices are expected to remain firm, supported by constrained stock levels and improving export competitiveness.
MPOB also highlighted potential gains in Malaysia’s palm oil market share following an increase in Indonesia’s CPO export levy structure to 12.5% effective March 2026,
alongside strengthening global demand dynamics and palm oil’s price advantage over competing vegetable oils.
In the absence of structural oversupply and with demand support intact, it provides a supportive operating backdrop for plantation players like WTK.
“Forging ahead, we are upbeat and confident in WTK’s prospects. With the divestment of the timber operations, 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.
“In addition, the 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.
Overall, WTK has strengthened its position to generate long-term value for its shareholders, he stated.
The acquisitions are expected to be completed by the second quarter of 2026.
