Japan’s Chugoku Electric Power Company paid roughly $1.2 billion to acquire a 44-percent stake in Energy Fiji Limited (EFL), former finance minister Aiyaz Sayed-Khaiyum has revealed.
In a detailed social media post, Sayed-Khaiyum described the deal as one of the largest commercial investments in Fiji’s history and argued it delivered fiscal relief to government while strengthening the country’s energy sector.
“Chugoku is a large reputable utility group and was backed by JICA, an arm of the Japanese government. It also has vast technological capacity in renewable energy, a resource and expertise that is essential for us in Fiji,” he said.
He said under the divestment, the Fiji National Provident Fund (FNPF) sold its 20 percent stake, while government offloaded 24 percent to Chugoku through a special-purpose vehicle. Another 5 percent of shares was reserved — free of charge — for eligible ordinary Fijian account holders.
Sayed-Khaiyum said FNPF “made a very handsome profit” from the sale, helping the fund award a 5 percent interest credit to members at the height of the COVID-19 economic shock.
The ownership structure of EFL now sits at 51% government, 44% Chugoku, and 5% ordinary Fijians — leaving Fijians with a combined controlling share of 56 percent.
“Chugoku, which is a minority shareholder, paid for the 44% stake at an enterprise value of approximately FJ$1.25 billion — the largest single transaction ever in Fiji,” he said, adding that the price reflected market confidence in EFL’s assets and growth potential.
Sayed-Khaiyum highlighted another consequence: the removal of state guarantees on EFL borrowing.
Historically, government had guaranteed loans taken by the utility, making them one of the largest contingent liabilities on the national balance sheet.
“After the sale, government withdrew all its guarantees and lenders were comfortable because of the partnership with Chugoku,” he said.
“That reduced risk, exposure and freed fiscal space.”
