Kuala lumpur: WTK Holdings Bhd and its wholly-owned subsidiary, BioPalm Venture Sdn Bhd, are planning significant acquisitions valued at RM555 million.

According to BERNAMA News Agency, the proposed acquisitions align with WTK’s strategy to enhance its footprint in the oil palm cultivation sector in Sarawak, incorporating both upstream plantation activities and palm oil milling operations.

The first acquisition involves WTK Realty acquiring seven million ordinary shares in Desacorp Sdn Bhd, which equates to a full equity interest, for RM230 million. The second acquisition, conducted through BioPalm Venture and WTK Realty, targets a 70 percent stake in Imbok Enterprise Sdn Bhd by purchasing 14 million shares for RM290 million. The third proposal sees BioPalm Venture and WTK Realty acquiring 3.5 million shares, representing a 70 percent equity interest, in WTK Oil Mill Sdn Bhd for RM35 million.

Upon finalization, Desacorp will become a wholly-owned subsidiary of WTK, while Imbok Enterprise and WTK Oil Mills will be 70 percent-owned subsidiaries of BioPalm Venture. WTK indicated that these acquisitions will strengthen the group’s financial standing as the financial outcomes of these entities will be integrated into WTK’s financial statements.

WTK expressed that this move is consistent with the Malaysian Financial Reporting Standards, and it will enhance the group’s asset base, revenue, profitability, and cash flow generation, securing long-term earnings visibility. The group is optimistic about the plantation division’s capacity to drive sustainable growth and profitability, supported by the robust global demand for palm oil.

The completion of these proposed acquisitions is projected for the first quarter of 2026.