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Fiji equity investment company Fijian Holdings Limited (FHL) has, for the second time, extended the transaction date for its multimillion dollar acquisition of BP South West Pacific to either mid or late this month.
FHL chairman Isoa Kaloumaira confirmed the extension saying a mutual agreement had been reached with BP SWP, a multi-national gasoline stations owner and operator.
“FHL has exercised its best endeavours in dealing with international banks, but few more issues are outstanding prior to the final sign off,” Kaloumaira said.
He said FHL managing director Sereana Qoro is currently in India for final discussions.
He would not say who Qoro is meeting in India.
“The devaluation of the Fijian dollar has had the impact of increasing the value of assets and liabilities outside of Fiji in Fiji dollar terms.
“The parties have agreed to alter the basis on which goodwill was stipulated, resulting in a reduction in the goodwill figure when calculated in US dollars,” Kaloumaira said.
Last month, FHL divested its stakes in Fosters Group Pacific Ltd, subsequently receiving $40 million.
“This has been used to reduce existing liabilities with the local banks. FHL also paid an additional $5 million to BP as a further deposit.
This is the second extension - the F$190 million (US$105 million) acquisition was scheduled to be sealed by April, and then it was extended to end of May, and now to mid or late June.
The deal has got some provincial shareholders worried. Some say the deal was a bit too much for FHL’s size.
At least four provincial councils have expressed concern and had questioned the FHL management.
Qoro has confirmed that the deal was not only the biggest but one of the most significant investment breakthroughs in FHL's history.
The acquisition was a milestone for Fiji because for the first time, a major petroleum company operating in the Pacific would be locally owned.
