Advertise
Fitters Diversified Bhd is moving to exit the palm oil industry as part of a broader strategy to reallocate capital into its primary business divisions. The group announced on Thursday that it has entered into a term sheet with Klayman Group Sdn Bhd for the disposal of its wholly-owned subsidiary, Solid Orient Holdings Sdn Bhd. Klayman Group is currently owned by Chong Kiew Fong and Ong Ah Luan.
The transaction involves the sale of a unit with an issued share capital of RM57.2 million. Solid Orient Holdings is primarily engaged in the operation of a palm oil mill and the production of crude palm oil (CPO). According to a filing with Bursa Malaysia, both parties will now proceed with a due diligence process before signing a definitive agreement. A final selling price for the subsidiary has not yet been determined at this stage of the negotiations.
This proposed divestment marks the third major subsidiary sale for Fitters Diversified since late last year. In September 2025, the group completed the sale of Fitters Sdn Bhd to the US-based Cyclacel Pharmaceuticals Inc. That deal, valued at RM18.72 million, was settled through the issuance of 699,158 new Cyclacel shares, representing nearly 20% of the pharmaceutical firm's equity at the time. Subsequently, in March 2026, the company finalized the sale of its interest in Future NRG Sdn Bhd for a cash consideration of RM15.2 million.
Regarding its financial standing, Fitters Diversified reported a revenue of RM85.29 million and a pre-tax profit of RM2.46 million for the third quarter ending May 31, 2026. These figures were bolstered by performance in its fire services and waste-to-energy sectors, alongside the one-time gain from the Future NRG sale. The company also recently adjusted its financial year-end to January 31, 2027, to avoid peak auditing periods, meaning its next audited report will cover a 17-month span.
On the market, shares of Fitters Diversified closed at 2.5 sen on Thursday, reflecting a market capitalization of RM73.64 million. The stock has experienced a significant decline, losing 37.5% of its value since the start of the year.
Source: The Edge Malaysia