17/08/2007 (The Star Online), KUALA LUMPUR - Golden Hope Plantations Bhd expects crude palm oil prices to hover around RM2,300 to RM2,400 per tonne by year end, supported by demand for biofuel and biodiesel, said chief executive officer Datuk Sabri Ahmad. 

"The fundamentals of the palm oil prices have changed due to new demand for biodiesel and biofuel while China and India will continue to increase demand," he told reporters after the company EGM on Friday.

At the meeting, Golden Hope shareholders approved the proposal to merge the company with Kumpulan Guthrie Bhd and Sime Darby Bhd to form Synergy Drive Bhd, the country's largest plantation player. 

Sabri said shareholders' approval was an indication of their confidence in the merger and the new entity. 

The merger will result in Synergy Drive owning more than 560,000 hectares of plantation land in Malaysia and Indonesia. 

Golden Hope, on its own, has already earmarked 50,000 hectares of plantation land in Kalimantan for expansion.

"Guthrie and Sime Darby may have potential to expand further," Sabri said. 

Meanwhile, Synergy Drive would maintained all Golden Hope employees for one year, following after, re-deployment would be considered, he said. 

The merged entity would focus on increasing productivity, raising yield and improving cost efficiency while expansion into niche products would be considered after the integration process was completed, he added.