Fijian Holdings gets $25m back

July 31, 2009 07:36:25 PM

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Fijian investment conglomerate Fijian Holdings Ltd said it has been refunded the $25 million deposit it paid BP South West Pacific Ltd for an initial intention to buy the latter’s Pacific oil business.

The $190 million buyout intent by FHL collapsed last week when it failed to secure financing locally and internationally. 

“FHL is pleased to announce that the full deposit amount of $25,002,979 has been received from BP SWP Ltd.  FHL is now in a much stronger position than ever before, now that it is a 100 percent debt free company with a net worth of $151 million,” said managing director Sereana Qoro in a statement filed at the South Pacific Stock Exchange. 

FHL is listed on SPSE and experienced a falling share price as uncertainty continued to surround its buyout plan, its woes taking a head when Qoro and board chairman Isoa Kaloumaira were asked to go on leave early this month to make way for a corporate governance audit. 

The pair was reinstated a week later but findings in the audit report were not made public, contravening mandatory SPSE listing rules.

Early this week, SPSE suspended trading in FHL shares until material information from the audit report was disclosed. 

“Although we are disappointed that the trading of FHL shares was suspended, we are pleased that the suspension was removed on the same day,” Qoro said.

“FHL was required by SPSE to provide a written confirmation on issues relating to the corporate governance audit, which could only be made through a written response from the office of the Acting Minister of Indigenous Affairs who is the Prime Minister.  FHL responses took a while because there were critical governance issues which needed to be observed and considered going forward.  And the end of the day, FHL is satisfied that the institution and the principles of good governance have been upheld,” Qoro said.

FHL last traded at $2.77 per share.