Sinergi Perdana to complete three acquisitions by year-end

sinergi perdanaPETALING JAYA – Sinergi Perdana Sdn Bhd, a government-initiated agricultural consortium, is on an acquisition trail and it plans to complete the takeover of two fertiliser companies and one rubber compound company before year-end.

A source close to Sinergi Perdana told StarBiz yesterday that the group would initially invest slightly over RM50mil for the three acquisitions to mark its maiden venture into large-scale fertiliser and rubber businesses in the country.

Set up in June last year, Sinergi Perdana is a consortium represented by three national plantation agencies the Federal Land and Development Authority (Felda), Federal Land Consolidation and Rehabilitation Authority (Felcra) and Rubber Industry Smallholders’ Development Authority (Risda) with an intended RM300mil paid-up capital.

Clarifying an earlier report that there was no progress made in the consortium, the source said the group was undertaking a due dilligence exercise for the acquisitions to safeguard its stakeholders’ interest.

On the fertiliser business, the source said the group was looking at acquiring premium compound fertiliser company Diversatech (M) Sdn Bhd for about RM30mil.

“We already have plans to increase Diversatech’s current capacity of 15,000 tonnes to 300,000 tonnes annually within the next three years,” he added.

Sinergi Perdana will also invest about RM3mil for its proposed takeover of a 100% stake in Konsortium Baja Nasional, which is owned by Felcra, Risda, Central Trengganu Development Authority and the south Kelantan Development Authority.

Once Sinergi Perdana has taken over Konsortium Baja Nasional, the source said the outfit would be the “fertiliser vehicle” for the group to become the biggest producer and supplier in Malaysia.

“We aim to capture about 40% to 50% share of the total local fertiliser market, estimated at 2.5 million tonnes annually and worth RM5bil within the next three to five years.

“Furthermore, we will be in a strong position to supply fertiliser to the government sector particularly Felda, Risda, Felcra and other government agencies and government-linked companies,” added the source. Currently, the annual fertiliser demand for Felda is estimated at 800,000 tonnes while both Risda and Felcra needed about 200,000 tonnes each.

On Sinergi Perdana rubber operations, the source said the group was eyeing to take over a compound rubber plant, which is a wholly-owned unit of Felcra, for about RM10mil.

“The plant, which produces rubber hose products and other rubber products mainly for exports in almost 15 countries, will become the group’s gateway for the overseas market,” he added.

On recent market talks that the group was looking for a new CEO, the source said the current Sinergi Perdana CEO is Mohd Zaid Jalil who was appointed in July last year under a two-year contract.

May 2022