W T K HOLDINGS W T K Holdings Berhad (KLSE:WTK) entered into share sale agreement to acquire additional 3.75% stake in Durafarm Sdn. Bhd. from Edwin Ak Banta for MYR 7.1 million on May 3, 2024.
Prior to the transaction, W T K Holdings Berhad (KLSE:WTK) held 70%. Biofarm will acquire 525,000 shares, representing 3.75% equity interest in Durafarm for a total cash consideration of MYR 7.08225 million. Biofarm will also acquire additional 11.25% equity interest in Durafarm in a separate agreement.
Post these deals, BioFarm Venture will increase its equity interest in Durafarm from 70% to 85%. The agreements are not inter-conditional upon each other. Consideration payable in cash shall be satisfied entirely via a combination of internally generated funds of WTK Group and bank borrowings.
Durafarm reported revenue of MYR 10.9 million and profit after tax of MYR 8.6 million on December 31, 2023. The acquisition are expected to complete in the 3rd quarter of 2024.
