Genting ventures into renewable energy

Monday, Oct 20, 2008

Genting Bhd is venturing into the renewable energy sector by acquiring one million shares of US-based Synthetic Genomics, Inc (SGI) for US$8mil or RM28.2mil from its founder.

Genting announced to Bursa Malaysia on Friday that its indirect unit Dragasac Ltd, was acquiring the Class A common stock, with a par value of 0.2 US cents each, at US$8 per share from its founder Dr J Craig Venter.

Genting said the one million SGI shares represented the economic and voting interests of about 2% and 3% respectively of SGI as at Sept 12.

SGI, under the leadership of Dr Venter, is dedicated to the research, development and commercialisation of genomic-driven solutions for the production of clean and sustainable energy.

With the continued drive towards renewable energy globally in mind, the proposed Acquisition represents an opportunity for Genting to invest and participate in the potential growth of the renewable energy sector, it said.

SGI’s main activity was to develop and commercialise genomic-driven solutions that address global challenges, beginning with energy and the environment.

This would see SGI applying synthetic and natural biological approaches to develop commercial solutions for a cleaner and more sustainable future.

SGI is designing novel metabolic pathways and synthesising whole chromosomes for the biological production of renewable energy and the creation of solutions that will help reduce the world’s dependency on oil and mitigate greenhouse gas emissions, it said. Last year, SGI had entered into a long-term R&D deal with BP to develop biological conversion processes that could lead to cleaner energy production and improve recovery rates of subsurface hydrocarbons.

In the same year, SGI also teamed up with Asiatic Development Bhd group to focus on the R&D and commercialisation of genomics-based solutions to produce improved planting materials to increase yield and enhance value creation from oil palm.

As at Dec 31, last year SGI had consolidated net assets of about US$59.5mil and recorded a net loss of about US$9.8mil.