KUALA LUMPUR (Oct 8): Fitters Diversified Bhd (KL:FITTERS) is proposing to sell its wholly-owned palm oil unit to raise cash for redeployment into other core divisions.
The group signed a term sheet with Klayman Group Sdn Bhd on Thursday for the disposal of Solid Orient Holdings Sdn Bhd, according to a Bursa Malaysia filing. Klayman is owned by Chong Kiew Fong and Ong Ah Luan.
Fitters Diversified said the parties will undertake the necessary due diligence before entering into a definitive agreement. No selling price has been proposed at this stage.
Solid Orient, which has an issued share capital of RM57.2 million, is principally engaged in the operation of a palm oil mill and the manufacture of crude palm oil.
The proposed sale follows two completed subsidiary disposals since September last year.
In September 2025, Fitters Diversified completed the disposal of wholly-owned unit Fitters Sdn Bhd to Cyclacel Pharmaceuticals Inc in exchange for 699,158 new Cyclacel shares, representing about 19.99% of the US company’s issued shares at the time.
The consideration had a fair value of RM18.72 million. Although an earlier amendment to the agreement had provided for an additional cash payment, no cash consideration was received upon completion.
Fitters Diversified subsequently sold its entire stake in Future NRG Sdn Bhd for RM15.2 million in cash, completing the transaction in March 2026.
For the third quarter ended May 31, 2026, the group recorded revenue of RM85.29 million and a pre-tax profit of RM2.46 million. The performance was supported by contributions from its existing fire services and renewable and waste-to-energy segments, as well as a gain from the Future NRG disposal.
Fitters Diversified previously changed its financial year end from Aug 31, 2026 to Jan 31, 2027 "to avoid the peak audit period". Its next audited financial statements will cover the 17 months from Sept 1, 2025 to Jan 31, 2027.
Fitters Diversified shares closed half a sen lower at 2.5 sen on Thursday, giving the group a market capitalisation of RM73.64 million. The stock has fallen 37.5% year to date.