An intent by Fijian Holdings Ltd (FHL) to secure controlling stakes in Port Denarau Marina Ltd (PDML) will be put to PDML shareholders in an Extra-Ordinary General Meeting (EGM) scheduled for next month.
FHL, an itaukei-owned investment conglomerate with businesses in the tourism sector, had announced in June the execution of a Share Sale Agreement with Skeggs Group Limited, which holds the interests of the founding family of the marina business, for the potential acquisition of Skeggs’ 23.5per cent shareholding in PDML.
FHL and PDML are listed on the South Pacific Stock Exchange (SPX) and the Skeggs Group’s listing of PDML in 2019 was to help facilitate the family’s stated intent to gradually exit the business.
In its announcement of the EGM on SPX last Friday, PDML revealed that the sale will include all of Skeggs Group’s remaining shares, with 23.5 per cent to be taken up by FHL and 19.52per cent by FHL Trustees Limited (FHLTL) on behalf of Fijian Holdings Unit Trust (FHUT).
Should shareholders (FHL will not be voting) approve the sale, FHL’s interest in PDML will increase from 27.5 per cent to 51 per cent, and FHL Trustees Limited from 0.11 per cent to 19.63per cent.
FHL first bought into PDML in March last year when it acquired 11million ordinary shares (27.5 per cent) from Skeggs Group at $1.77 a share, facilitated through a special crossing on SPX.
Skeggs Group Ltd is a New Zealand private family company of the Skeggs family, founded by the late Sir Clifford Skeggs in 1952.
PDML shareholders have been asked to take into consideration the merits of the proposed sale (as offered by the FHL side) when they vote at the EGM on Friday December 5, these being:
n “Public benefit – the Proposed Transaction will see the transition from foreign family-owned ownership to Fijian owned ownership of interests in critical tourism infrastructure. This will have significant effect for foreign reserves (dividends will be paid locally), economic sovereignty, indigenous economic participation and sustainable tourism development.
n Strategic alignment – FHL and FHUT’s strategy focuses on five critical areas: Investing for Impact, Future-Proofing Core Investments, New Investments, Digital Transformation and Corporate Culture. The Proposed Transaction aligns with FHL and FHUT’s strategy and will place majority ownership with an entity with deep commitment to Fiji’s economic development.
n Support For Growth – FHL intends to leverage its relationships, network and resources to identify new business opportunities for the Company in the long term. FHL’s ownership structure creates strong incentives for long-term sustainable development, greater support for local suppliers and maintaining employment. As an institutional investor, FHL has demonstrated its commitment to long-term asset development and through its access to capital markets, it has demonstrated capacity to access capital for infrastructure investment.”
PDML shares last traded at $2.25 a share when this edition went to press.
