WTK Holdings Berhad, a diversified group based in Sarawak, has received unanimous shareholder approval for its proposed acquisition of Desacorp Sdn Bhd, Imbok Enterprise Sdn Bhd, and WTK Oil Mill Sdn Bhd. The acquisitions, valued at $118.5m (RM555m), aim to significantly expand WTK’s plantation business by increasing its planted oil palm area by 82.6% to 31,809.86 hectares.
The acquisitions are expected to enhance WTK’s operational scale and efficiency, particularly with the addition of a dedicated in-estate mill. This move aligns with WTK’s strategic shift away from timber operations, focusing instead on its plantation division as the core business segment. Chairman Tan Sri Datuk Seri Panglima Sulong Bin Matjeraie expressed confidence in the group’s strategic direction, stating, “Our immediate priority will be the execution and orderly integration of the acquired assets into the Group’s existing operations.”
The outlook for the plantation sector remains positive, with crude palm oil prices expected to stay firm, supported by constrained stock levels and improved export competitiveness, according to the Malaysian Palm Oil Board. The recent increase in Indonesia’s crude palm oil export levy structure is also anticipated to benefit Malaysia’s market share.
WTK’s divestment from timber operations is expected to stabilise its earnings profile, with the new acquisitions set to be earnings accretive. The group anticipates completing the acquisitions by the second quarter of 2026, further solidifying its position in the plantation sector.
