FHL moves in on RB management deal

October 30, 2009 08:05:50 AM

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Fijian Holdings Ltd subsidiary FHL Retailing Ltd has exercised its option to acquire a management contract to manage the RB Patel Group in a move said to broaden the retail aspect of the FHL Group’s operations.

The arrangement was put in place in an options agreement signed between FHL Retailing Ltd and the RB Patel family in April 2008, when FHL acquired a 50.16 percent shareholding in the RB Patel Group.

“It will be business as usual as the RB Patel family will continue to manage the business following this acquisition through a separate Technical Consultancy Agreement (TCA) with FHL Retailing Ltd,” said FHL managing director Sereana Qoro.

A statement from the RB Patel Group said under the TCA executed by FHL, members of the Group’s current management team had been engaged to continue managing the company on a long-term basis.

“Under the new TCA, Surendra Patel and other key personnel from the RB Patel family will continue to run the business as normal,” said RBG chairman Isoa Kaloumaira.

“The retail sector within the FHL Group will be strengthened by this acquisition and while providing an enhanced dividend stream to FHL,” Qoro said.

The RB Patel Group, one of the highest perfoming securities listed on the Suva-based South Pacific Stock Exchange, runs a major chain of supermarkets.

FHL also has a 15 percent stake in New World Ltd which owns the New World chain of supermarkets throughout Fiji.