Shareholders today approved a merger between three giant Malaysian plantation companies to create the world's largest listed palm oil firm in an RM38.7 billion (US$11 billion) deal.

"Shareholders of Golden Hope Plantations Berhad, Kumpulan Guthrie Berhad and Sime Darby Berhad approved the proposed merger ...," Synergy Drive Bhd said in a statement.

Synergy Drive is the vehicle merging state-linked firms Sime Darby, Golden Hope Plantations and Kumpulan Guthrie in the RM38.7 billion deal.

Mohamd Nor Yusof, chairman of Synergy Drive said that the results of the meeting showcased shareholders' confidence in the new enlarged entity and marks an important step towards the creation of Synergy Drive.

"The deal is done and it paves the way for the other companies to participate in the merger," he said.

Overwhelming support

There was overwhelming support from the shareholders of Guthrie, Golden Hope and Sime Darby who voted in favour of the merger proposal at the companies' respective extraordinary general meetings held Thursday and Friday, it said.

Synergy Drive said shareholders voted on two resolutions - the proposed disposal the companies' entire businesses to Synergy Drive as well as to allow them to convert their current shares to Synergy Drive shares or redeem it for cash.

The government's investment vehicle Permodalan Nasional will control the new firm. The listing of Synergy Drive is slated for November 2007.

It is expected to have total annual revenue of over RM26 billion, a workforce of more than 107,000 and combined plantation land of some 600,000 hectares (1.48 million acres) in Malaysia and Indonesia.