Your trusted source for Pacific Islands news, analysis, opinions, events and business intelligence.

With Fiji caught in the darkness of a descending cloud of COVID-19, its government has pushed through the sale of a large portion of the national energy company to a Japanese consortium.

In its initial announcement, the government said it had sold 44% of Energy Fiji to Chugoku Electric Power Company. That stake was made up of shares held by the government (24%) and the Fiji National Provident Fund’s 20%  share.  

On June 3 of this year, Attorney General and Minister for the Economy, Aiyaz Sayed-Khaiyum, told parliament that the State received “about $440 million” (US$212 million) from the consortium. This equates to “about” $2 per share for 220 million shares (EFL has issued 500 million shares in total).  

The first attempts to sell a 44% stake in EFL were made in 2015. When there were no international takers, shares were sold to the Fiji National Provident Fund as a stop-gap measure. In April 2019, Sayed-Khaiyum said Fiji had rejected an offer from a Malaysian company which wanted total control of the company. “It was always understood that FNPF will hold on to the shares until the Government finds a strategic partner to buy the 44%, in which case FNPF will sell its holding, as per the sale agreement,’’ he said.

FNPF bought 20% of EFL (or 100 million shares)  from the government for  $206,109,989.13 in October 2019 according to its Annual Report for that year. That equates to $2.06 per share. EFL’s net asset value as of December 31 of that same year was $850.79 million.

For the full story, login to your account or subscribe today.

Share article:

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on print

Related Posts


Behind the story

Ruben Vulawalu returned to his village of Drue, Kadavu after 20 years for his story,