FHL-Hindustan Petroleum deal intact

June 20, 2009 04:25:50 PM

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The deal between Fijian Holdings Ltd (FHL) and India’s Hindustan Petroleum Corporation Ltd for the management of the oil business currently being purchased by FHL is intact despite a series of delays in the purchase process. 

FHL’s chief executive officer Sereana Qoro said this week that Hindustan Petroleum, who take on a 26 percent stake in the over $200 million oil business as part of their contract, was excited about the opportunity to establish a presence in the Pacific region.

“They are more excited than we are.  For them it’s a strategic move.  They are a member of the Fortune 500 and they don’t move in anyhow in any parts of the world,” said Qoro when speaking to brokers this week. 

“They are here because it’s strategic for them to be in this region.  They are excited about being in another part of the world, particularly South West Pacific.  So they are determined, they are excited and we are in the process of moving families over.” 

FHL’s purchase of BP South West Pacific Ltd (BPSWPL) was announced last year and the company had expected the deal to be completed in a few months after negotiations with a syndicate of local financiers, including the Fiji National Provident Fund. 

However, FNPF’s pullout had forced FHL to look elsewhere for funding, which it is now doing in India. 

Hindustan Petroleum is a Fortune 500 company with a turnover of over US$27.95 billion and commands a market share of 18 percent in petroleum products in India, 11 percent of 21 commercial airports and 2 defense bases.