WTK Holdings Bhd has proposed the disposal of three adjoining oil palm plantation estates in Miri, Sarawak, for a total cash consideration of RM221.5 million, as part of its strategy to streamline and rebalance its plantation portfolio.
The proposed disposals involve subsidiaries Towering Yield Sdn Bhd, Bioworld Synergies Sdn Bhd, Biogreen Success Sdn Bhd and Borneo Agro-Industries Sdn Bhd, which have entered into conditional agreements with Trinity Capital Resources Sdn Bhd.
The assets comprise three estates covering approximately 7,697 ha in total, of which about 5,795 ha are planted. The transactions are expected to generate a net pro forma gain of RM86.6 million for the group.
The breakdown includes RM27 million for Positive Deal Sdn Bhd’s plantation assets in Batang Baram, RM145.2 million for the Biogreen Estate and RM49.3 million for the Borneo Estate in Kuala Baram.
WTK said the disposal price represents a 5.7% premium, or RM11.9 million, over independent valuations, supported by expected operational synergies for the buyer through consolidation of the estates.
The group said the estates are located about 90km from its nearest palm oil mill, resulting in higher logistics costs and reduced crop quality due to longer transportation time, limiting operational integration with its core milling infrastructure.
It added that the plantations, with an average palm age of around 14 years, would require significant replanting investment, making them less optimal compared to other assets within its portfolio.
Executive Director Francis Lai said the disposal allows the group to unlock value from non-core assets while strengthening its focus on estates that are better integrated and deliver higher operational efficiency.
He said RM221.5 million in proceeds will enhance financial flexibility, with RM185.6 million allocated to working capital, RM27 million for borrowings repayment, and the balance for expenses and taxes.
The disposals are expected to be completed in the first half of 2027, subject to shareholder and regulatory approvals.
