FSC divests shares in South Pacific Fertilizers

The Fiji Sugar Corporation has officially announced the divestment of its 40 percent shareholding in the troubled South Pacific Fertilizers Ltd (SPF), making way for the restructure of the company.  

SPF imports bulk fertilizer and blends, packs and distributes the blended fertiliser to Fiji’s cane farmers. Up until now, its shareholders comprised FSC (40 percent), Sugar Cane Growers Council (40 percent) and the Sugar Cane Growers Fund (20 percent).  

“Following the Cabinet decision of 21 April 2009 on the way forward for South Pacific Fertilizers Limited and as part of the sugar industry reform, Cabinet has decided for FSC to divest from SPFL and its shares transferred to the remaining shareholders in proportion to their respective shareholding, after capitalisation of Growers Fund into equity,” FSC chief executive officer Deo Saran said, in an announcement at the South Pacific Stock Exchange, where FSC is listed.  

Last month, the government agreed to subsidise the retail cost of fertiliser sold by SPF to farmers, which had to be increased from $19.50 per bag to $45.59.  

It was also decided that SPF be restructured via the conversion into equity of its $14 million loan from the Sugar Cane Growers Fund.  

In his submission to Cabinet, Sugar Minister Commodore Voreqe Bainimarama revealed that the SPF was expected to post a loss of $7 million for the year ending March 31, 2009.