Since last week, CIMB Investment Bank have proposed to use Synergy Drive Sdn Bhd to merge the three largest plantation companies in Malaysia, namely the Sime Darby Bhd, Golden Hope Plantation Bhd and Kumpulan Guthrie Bhd.
According to the bank, by merging the plantation operation, the new company can cut cost and improve profit and it will become the world largest plantation company that contribute 8% to the world total palm oil production.
Proposed plantations merger up to shareholders, says Nazir
By Surin Murugiah
CIMB Investment Bank is leaving it up to Sime Darby Bhd, Golden Hope Plantations Bhd, Kumpulan Guthrie Bhd and their shareholders to decide on the proposed RM31.4 billion merger of the three companies by Dec 27.
"We have made presentations to the boards (of the three companies) and tabled the offer.
"We now leave it to them to decide," CIMB Group chief executive officer Datuk Nazir Razak told reporters in Genting Highlands on Dec 5 when asked to comment on the merger proposal.
He said the companies had 30 days to decide on the offer by Synergy Drive Sdn Bhd, which is the proposed special purpose vehicle to group together the three companies and their subsidiaries.
Asked what would happen if no outcome was achieved by that date, Nazir said: "We will cross that bridge if we have to. The offer date cannot be in perpetuity."
CIMB Investment Bank announced on Nov 27 of Synergy Drive's offer to buy the assets of the three plantations companies. It will see their existing major shareholders Permodalan Nasional Bhd, retaining control of the new enlarged entity.
Meanwhile, Sime Darby chief executive officer Datuk Ahmad Zubir Murshid told reporters in Kuala Lumpur that its directors planned to meet by Dec 25 to consider the proposed merger.
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