KUCHING: WTK Holdings Bhd is seeking its shareholders’ approval on the proposed acquisition of two oil palm plantation estates and an oil palm mill for a total RM555 million at an extraordinary general meeting in Sibu on January 29, 2026.
The proposed acquisitions involve 100 per cent equity interest in Desacorp Sdn Bhd by WTK for RM230 million, 70 per cent equity interest in Imbok Enterprise Sdn Bhd by WTK’s wholly-owned subsidiary BioPalm Venture Sdn Bhd for RM290 million, and 70 per cent equity interest in WTK Oil Mill Sdn Bhd, also by Biopalm Venture, for RM35 million, Desacorp owns about 5, 229 hectares landbank, with total planted area of 4,543 hectares.
Of the planted area, 2,634 hectares (57.98%) of the palm trees are mature (15 to 18 years), 1,543 hectares (33.95%) prime mature (9 to 14 years), 232 hectares are young mature (4 to 8 years) and 135 hectares are immature (2.98%).
On the other hand, Imbok has a total planted area of 9,846 hectares, out of which 4,160 hectares (42.26%) are young mature, 4,110 hectares immature (41.74%) and 1,575 hectares (16%) are more than 25 years old.
The proposed acquisitions will considerably raise WTK group’s oil palm planted area by about 14,389 hectares (+82.6%) to 31,810 hectares from 17,421 hectares, said WTK chairman Tan Sri Sulong Matjeraie in a circular to shareholders.
The company’s board of directors has recommended shareholders to vote in favour of the proposed acquisition.
Once approved, the proposed deals are expected to be completed in second quarter of 2026.
“This expansion aligns with WTK’s long-term strategy of strengthening its footprint in the plantation sector, which has become a core revenue driver for the group.
Given the scarcity of sizeable and suitable land for oil palm cultivation in Malaysia, the proposed acquisitions present a valuable opportunity to secure land banks that will contribute to WTK’s long-term production growth,” he added.
Upon completion of the proposed acquisitions, the palm age profile of the group’s oil palm estates will comprise prime mature of about 9,747 hectares (30.64%), young mature 8,384 hectares (26.36%), immature 7,188 hectares (22.6%), old (15-25 years) 56 hectares (0.17%) and extended (over 25 years) 1,575 hectares (4.95%).
Sulong said WTK intends to carefully manage the extended trees (more than 25 years old) in Imbok plantation estate to maximise their remaining productive potential.
Extended trees, which are older than the prime production period, typically yield lower fresh fruit bunches (FFB) but can still contribute meaningfully to short-term harvests if properly maintained, “WTK plans to implement targeted agronomic practices, such as selective purning, fertilisation and pest management, to sustain productivity from these trees while monitoring overall yield performance.
“Over the medium term, WTK will adopt a phased replanting strategy, gradually replacing the least productive extended palms with new, high yielding seedlings.
This approach balances immediate FFB production with long-term plantation renewal, ensuring a smooth transition from extended to mature palms without disruption to cash flow.
By strategically managing extended trees, WTK aims to optimise both shortterm revenue and the long-term sustainability of the plantation,” he added.
Sulong said oil palm trees typically begin producing FFB at four years of age, with the yield gradually increases and reaches the prime production period between nine and 14 years during which the palms generate maximum stable yields.
He said more than 90 per cent of the oil palms in Desacorp plantation estate are prime mature and mature while Imbok plantation estate has the majority of its palms at a relatively young age (more than 80 per cent of the palms are immature and young mature) and only 16 per cent of its palms are at the extended age of more than 25 years.
“As the palms enter into maturity and move into higher yielding age bracket, Imbok estate’s oil palm yields are poised to further improve and the growth momentum in their earnings is expected to continue in the future financial years.”
Upon completion of the acquisition of Desacorp and Imbok, Sulong said the WTK group will become a stronger player in the planation industry, with a larger operational scale and improved efficiency.
The higher yielding potential of Desacorp and Imbok plantations’ young oil palm trees, coupled with WTK Oil Mill’s dedicated milling operations will contribute positively to the group’s revenue and earnings in the coming years.
“The contributions to earnings from Desacorp and Imbok plantations are expected to grow as FFB production increases, providing a long-term revenue stream to the group that enhances financial stability and profitability.
“With increasing global demand for palm oil, we are well positioned to capitalise on market opportunities, ensuring sustainable and profitable growth for the group and its shareholders.”
In financial year ended December 31, 2024 (FY2024), WTK group’s FFB production increased sharply to 231,180 tonnes from 172,832 tonnes (FY2023) and 109,764 tonnes (FY2022).
During the same period, the FFB yield jumped to 13.15 per tonne/hectare from 10.81 tonnes/hectare in 2023 and 9.32 tonne per hectare in 2022. Added Sulong,
“In the context of the 2025 industry outlook, WTK is strategically positioned to benefit from several favourable factors.
Malaysian palm oil production is expected to remain stable at approximately 19.5 million tonnes, with global demand continues to strengthen, supported by robust import requirements from key markets, such as India, China, the European Union and other emerging economies.
“This stable production, combined with strong export demand and favourable commodity prices, provided WTK with a reliable revenue base and enhances cash flow predictability.”
“Additionally, the implementation of Indonesia’s B50 biodiesel programme n 2026 is expected to absorb much of Indonesia’s production growth, thereby reducing the risk of oversupply and support regional palm oil prices which benefits Malaysian exporters, including WTK.”
