Sarawak-based WTK Holdings Bhd is set to unlock RM90 million in cash proceeds through the disposal of its Biogrow City plantation assets, a move expected to deliver an estimated RM72.7 million gain and streamline its plantation portfolio.
Its wholly owned subsidiaries, Biogrow City Sdn Bhd and Bioworld Synergies Sdn Bhd, have entered into conditional agreements with Rimbun Temasek Sdn Bhd to dispose of their respective interests in Biogrow City Plantations Sdn Bhd, which operates oil palm plantations and a palm oil mill in Limbang, Sarawak.
Under the deal, Biogrow City Sdn Bhd will dispose of an 85% equity interest in the plantation firm for RM65.6 million, while Bioworld Synergies will sell redeemable preference shares worth RM24.4 million.
WTK said the disposal forms part of its strategy to streamline its plantation portfolio and unlock value from underperforming assets that are geographically distant from its core operations in Miri and Bintulu, which have suffered from higher logistics costs, weaker yields and underutilised milling capacity.
Executive Director Francis Lai said the transaction will allow the group to strengthen its balance sheet, improve financial flexibility and redeploy capital into more productive assets, including recently acquired plantations with better yield potential.
He added that WTK will continue to optimise its plantation portfolio while pursuing earnings-accretive acquisitions and expanding its food and tape segments to build a more resilient earnings base.
The deal is expected to be completed in the fourth quarter of 2026, subject to fulfilment of conditions.
