Security, Asset Details Won’t Be Revealed

The chairman of Fijian Holdings Limited (FHL) said the company has a lot of assets to put as security for the commercial banks to finance FHL's new venture where they have sealed an agreement on the purchase of BP South West Pacific worth $190 million.

FHL chairman Isoa Kalouimaira said he will not divulge the details of the security and assets as that's only for the FHL and the commercial banks to know.

Kaloumaira confirmed yesterday that FHL will be dealing with local financial institutions to help raise the finance to buy the BP South West Pacific service stations.

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 have also been held with officials from the Reserve Bank on the matter.

He said all other details regarding the operations of the new subsidiary company will be revealed later after everything is finalized.

It will be called FHL Energy Ltd and will be in full operation in Fiji and 67 retail outlets and related operations in Fiji, Tonga, American Samoa, Cook Islands, Tuvalu and Vanuatu within the next 6 months.

FHL had engaged Hindustan Petroleum Company Ltd to manage and operate the new oil company after the assistance of the Indian High Commissioner in Fiji.