Japan Bank for International Cooperation as well as Sevens Pacific Pte Limited owned by Chugoku Electric Power Company will acquire 44% shareholding in Energy Fiji Limited.
They have entered into an agreement with the Fijian Government.
In a statement, the government says the consortium will acquire 44% of shares in EFL, where 24% will be acquired from the government and 20% from Fiji National Provident Fund.
They say as a result of the share purchase, FNPF will fully divest its shareholding in EFL to the consortium.
The government will continue to remain the major shareholder in EFL, retaining a controlling interest of 51% of the shares in EFL while Fijian account holders with shares in EFL continue to hold 5%.
It states this investment is the culmination of an exhaustive process to identify a highly experienced and credentialed international utility to acquire a shareholding in EFL.
They say it was a critical objective of any transaction that the investor not only offer a financial investment to Fiji, but contribute deep operational expertise and experience in electricity generation and networks. It states EFL will have the ability to tap into world-leading operational expertise, project delivery experience, technology and financial capacity to support the company in meeting the growing electricity demands of the nation and its renewable energy targets, while also providing reliable, renewable and affordable electricity to all Fijians.
They say with over 50% of EFL’s electricity already generated by renewable sources of hydro, wind and biomass, Fiji is well placed to achieve its long-term target and the combined expertise and capital of Chugoku Electric Power Company and the Japan Bank for International Cooperation is expected to dramatically boost this transition.
FNPF Acting Chief Executive Officer Viliame Vodonaivalu says the opportunity for FNPF to invest in EFL was unique in both the quality and scale of the business and supported investment strategy to diversify into more growth assets.
He says EFL is an exceptional operation and undoubtedly one of Fiji’s leading corporations, supported by the dedicated efforts of management and employees.
Acting Minister for Economy, Faiyaz Koya says EFL has found a reputable partner for change in the Chugoku Electric Power Company as it prepares to spearhead Fiji’s transition to carbon neutrality by 2050.
Koya says despite the obvious challenges the COVID pandemic has posed for cross-border agreements, Fiji and Japan have capped 50 years of strong diplomatic ties with the single-largest investment ever made by a Japanese company in Fiji.
He says with Chugoku’s operational capacity and expertise at its disposal, EFL can perform better for the Fijians who rely on their services today while transforming into the driving force behind Fiji’s renewable energy revolution.
Government was advised by ANZ Corporate Advisory and Squire Patton Boggs.
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