WTK Holdings Disposes Logging Unit For RM23.5 Mln

KUALA LUMPUR, April 30 (Bernama) -- WTK Holdings Bhd today entered into a sale and purchase share agreement with Huang Qian Wen to sell its 100 per cent stake in Song Logging Company Sdn Bhd (SLCSB) for RM23.5 million.

In a Bursa Malaysia filing today, it said the proposed disposal entailed selling 2.51 million ordinary shares in SLCSB, which is mainly engaged in extracting and selling logs and timber products in Sarawak.

WTK said the group is undergoing a strategic shift to focus on more commercially sustainable and profitable business segments.

Given the challenges faced by the timber sector, the group aims to prioritise its plantation and food operations, which have demonstrated stronger growth potential and profitability in recent years.

"Divesting non-core timber assets allows the group to streamline its focus and allocate resources more effectively for sectors with long-term growth prospects.

"The proposed disposal will enable WTK Group to optimise its profitability by shedding non-core and less profitable businesses. (This) is expected to enhance operational efficiency and improve the overall financial health of the group," it said.

-- BERNAMA