A senior academic at the Fiji Institute of Technology (FIT) is of the view that Fijian Holdings Limited (FHL) should have bought shares in BP South West Pacific rather than committing itself to totally own the company after FHL sealed an agreement on the purchase of BP South West Pacific worth $190 million.
Head of Faculty for Commerce, Hospitality and Tourism Dr. Mahendra Reddy said FHL would commit itself in servicing this new investment for the next 15 to 20 years.
However, Dr. Reddy said there is another side of the coin in this kind of investment.
FHL Chairman Isoa Kaloumaira said FHL will be dealing with local financial institutions to help raise the finance to buy the BP South West Pacific service station.
There is no word on how much money will be borrowed by Fijian Holdings and how much will be borrowed locally and abroad.
It is also unclear at this stage on whether Fijian Holdings will fully pay off the $190 million to the current owners or they will opt for payment in installments.
He said discussions had also been held with officials from the Reserve Bank on the matter.
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FHL Should Have Bought Shares: Dr. Reddy
