Synergy Drives Plantation Merger

NST REPORT: SYNERGY Drive Sdn Bhd had offered RM31.4 billion to merge Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd and create the world's largest publicly traded oil palm company.

Synergy Drive is a special vehicle "intentionally" created and "seed-funded" (not actually funded) by CIMB Investment Bank solely for the purpose of undertaking the merger (and thereafter, to divest it to foreigners for a profit).

Synergy Drive was registered on Nov. 7, 2006, under the names of Rossaya Mohd Nashir and Wan Razly Abdullah Wan Ali as directors (both are CIMB staffs).

Nazir Razak said the merger would create a global leader in oil palm plantations, with a potential total annual revenue of over RM26 billion, a combined workforce of over 107,000 and total plantation land of about 600,000ha located in Malaysia and Indonesia.

The merged entity would account for about 6 per cent of global palm oil production and would have a combined net profit of RM1.4 billion.

All the 3-entities, Sime Darby Bhd, Kumpulan Guthrie Bhd and Golden Hope Plantations Bhd are currently Bumiputera controlled (Negara Properties had been excluded). With the proposed merger, what are the financial strategies of CIMB and how are they going to ensure that it remains under Bumiputera's control? RM31.4 billion funding is not a small matter and the way it is observed, CIMB will eventually divest large portion of the stakes to foreign fund owners which will ultimately dilute the Bumi Equity holdings and in turn will reduce the 18.9% stakes which the govt and UMNO had been harping on.

It is frustrating to note that the govt seems to be double-tongued - saying one thing and doing another. On one end, they wanted and shouted unequal level playing fields in the economic wealth distribution and education; on the other, they made decisions to continually and persistently dilute the Bumi stakes in the equity market. How could they achieve the 30% stakes that they are shouting? The acts are contrary and a betrayal of their objectives.

We have heard that Proton will be divesting it's 51% controlling stakes to VW, AMMB will be selling 25% of its stake to ANZ and Bank Muamalat, 70% controlled by Syed Mokhtar is divesting 30% of its stake to foreigners. Wouldn't this reduce the 18.9% stake further? Where the fuck is Khairy and Kerismuddin? Why are you all silent when the Bumi stakes are reduced? Didn't you said that: "Umno is willing to risk lives and bathe in blood in defence of race and religion?" Tan Sri Mohamad Rahmat said: "Don't test the Malays, they know 'amok'". Aren't you suppose to run amok with all these news? Or is it: Cakap Tak Boleh Serupa Bikin? Or is it that they are part of the profit game plan? I don't know.

Read more in Rocky's Bru articles here and here and here