The deal involves Kencana, which is also involved in palm oil, raising S$52.5 million via a placement of new shares to Wilmar. The new shares represent about 15 percent of Kencana's enlarged capital.
Kencana's existing shareholder Kencana Holdings will sell another 5 percent of the firm to Wilmar.
The deal values Kencana at S$0.35 a share, which is less than the firm's last traded price of S$0.395.
Reuters reported on Wednesday that Wilmar was planning to take a 20 percent stake in Kencana.
