FIJIAN Holdings Ltd has divested its shares in wholly owned subsidiary in Papua New Guinea, Basic Industries (PNG) Ltd on March 31, this year.
The company said the divestment was for a consideration of 1million kina ($F674, 979) to Pernix PNG Ltd.
In the process of divestment, FHL has made an additional 6m kina ($F4.05m) investment in Pernix PNG Ltd.
Pernix PNG Ltd, a joint venture between Pernix Group of USA and FHL, is a newly incorporated company with plans to make inroads into energy and construction sectors in PNG.
Group CEO Nouzab Fareed said they assured FHL shareholders at the last annual general meeting that they would do their best to turn around operations.
If not, they will ensure it would be divested before June 30, 2016.
Basic Industries Ltd commenced in late 2010 and has an accumulated loss of more than 8m kina ($F5.40m).
Pending shareholders agreement between the three parties, the additional funds will be treated as shareholders deposit in Pernix PNG. At present, FHL owns a 21 per cent stake in Pernix Fiji Ltd.
President of Pernix Group Nidal Zayed said the partnership between Pernix and FHL now extended from Fiji to PNG and would eventually lead to partnership in Pernix operations throughout the Pacific Rim.
Mr Zayed, who had made several visits to PNG, said he was very confident about the PNG economy and the opportunities it presented.
“We want to bring cutting edge technology, create employment for the people of PNG and contribute to its economy through local partnership and participation,” he said.
Pernix says it is honoured to be a bridge between the people of Fiji and PNG to share ownership of the company with local enterprises and shareholders.
“Together we can drive growth not only in Fiji and PNG but throughout the Pacific Rim,” Mr Zayed said.
