Synergy Drive Gets SC's Nod For RM30 Bln Mega Merger

KUALA LUMPUR, July 17 (Bernama) -- Synergy Drive Bhd has secured approval from the Securities Commission (SC) to proceed with the RM30 billion merger involving three major plantation players.The approval was granted by the regulatory body yesterday, Synergy Drive said in a statement today."With the approval from the SC secured, we look forward to shareholders endorsement for the merger at the respective extraordinary general meetings slated for August," said Synergy Drive chairman Tan Sri Md Nor Yusof.The merger will involve Golden Hope Plantations Bhd, Kumpulan Guthrie Bhd and Sime Darby Bhd group of companies.Synergy Drive had sought several approvals from the SC, including acquisition of the entire businesses and undertakings including all assets and liabilities of the eight companies involved in the merger, to be satisfied by the issuance of redeemable convertible preference shares (RCPS), distribution of the RCPS received by the eight companies and presenting the disposal consideration to their respective shareholders.Shareholders can immediately convert the RCPS receivable as purchase consideration to Synergy Drive shares valued at RM5.25 per share or redeem them for equivalent cash, Synergy Drive said.The company also sought the SC's consent for the listing of Synergy Drive on the Main Board of Bursa Malaysia.The listing, which is set to take place in November, will see Synergy Drive potentially emerging as the second largest company on the bourse with a market capitalisation of about RM48.5 billion.This is based on the current market capitalisation as of June 15, 2007, of all the companies involved in the merger.This also represents an increase of RM18.3 billion or 60.8 percent to shareholders since the announcement was made on Nov 27, 2007, by CIMB Bhd, Synergy Drive said.Besides the main three companies, the five other related companies involved in the merger are Guthrie Ropel Bhd, Highlands & Lowlands Bhd, Mentakab Rubber Company (Malaya) Bhd, Sime Engineering Services Bhd and Sime UEP Properties Bhd.Upon completion of the merger, Synergy Drive is expected to have a combined workforce of about 107,000 people and five core businesses spanning plantations, property, heavy equipment, motor vehicles, and energy and utilities.