WTK Holdings Bhd has proposed to acquire a 15% equity stake in Durafarm Sdn Bhd for RM28.3 million in cash. WTK’s wholly-owned subsidiary, BioFarm Venture Sdn Bhd, has entered into share sale agreements to purchase 1.57 million shares (11.25% equity) from Datuk Robert Lawson Chuat for RM21.4 million, and 525,000 shares (3.75% equity) from Edwin Ak Banta for RM7.08 million.
Durafarm is engaged in oil palm plantation operations and fresh fruit bunch sales in Betong and Sri Aman, Sarawak. Its main assets comprise 19 plots of plantation land totaling approximately 5,040.97 hectares, of which around 4,482.40 hectares are fully planted with oil palms, while 395.48 hectares are under replanting development.
WTK states the acquisitions will enable its group to account for additional profitability and cash flows from the 15% equity stake in Durafarm. The purchases will be funded through a combination of internal funds and bank borrowings.
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