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Foster’s Group Limited (Fosters) has today purchased Fijian Holdings Limited’s (FHL) 29 per cent shareholding in Foster's Group Pacific Ltd (FGP) on the South Pacific Stock Exchange.
The transaction is understood to be the largest ever for the SPSE.
FGP had announced earlier this month its intention to purchase the shares in the company following FHL’s intention to sell it off for an estimated $40 million, planned to be re-invested in new opportunities.
The settlement of the transaction will take place tomorrow.
On the SPSE trading floor today, 3,017,500 FGP shares went through a special crossing from FHL to Foster’s Australia Limited, a wholly owned subsidiary of Foster’s, at $13.26 per share.
“This values around $40 million and increases Foster’s ownership interest in FGP to 89.6 per cent,” FGP director Ross Shaw said in a statement.
He said the transaction did not affect the current market price of FGPL shares, which stands at $13.77 per share.
FHL managing director Sereana Qoro confirmed the company had completed the sale of its holdings in FGP with a gross cash inflow of $40,012,050 to FHL.
As a result of the completion, Qoro and Jaoji Koroi, being FHL’s representative to the FGP board, have resigned from their role as directors of Foster's Group Pacific.
The investment institution, owned by indigenous Fijians, has been trying to secure financing for the purchase of oil giant BP South West Pacific, which had pulled out of the Pacific region.
The $190 million oil deal is expected to be wrapped up by the end of this month.
