FHL joint venture partners divest

July 27, 2012 | Filed under: Fiji News | Posted by: newsroom
By RACHNA LAL

Fijian Holdings Limited (FHL) has announced plans by their joint venture partners in the building and construction sector to divest their holdings in the coming months.


The two joint ventures include Basic Industries Limited and Fiji Industries Limited, both of which FHL is the majority shareholder of (51 per cent and 50.2 per cent respectively).


FHL confirmed they would waiver their pre-emptive rights to acquire the shareholdings of the joint venture partners in both the companies.


The chairman of FHL board, Iowane Naiveli, in a statement from the South Pacific Stock Exchange said they had been in discussion with their partners for the last 24 months.


“FHL has made a decision to waive its pre-emptive rights to both Basic Industries and Fiji Industries mainly based on our exposure in the sector,” he said.


As such, 49 per cent of Basic Industries owned by Holcim New Zealand and 47.3 per cent of Fiji Industries owned by South Pacific Cement Limited would be available for sale.


Auckland-based corporate advisory firm, Campbell Macpherson Limited would handle their sale process.


FHL acting group chief executive, Nouzab Fareed said: “We are pleased with the performance of our current portfolio and with the current exposure to the building and construction sector.”


Basic Industries engages the business of ready-mix concrete, quarrying and stone crushing, concrete blocks, aggregates, customs clearing, concrete pipes, and precast products.


It trades as Standard Concrete and Hume Industries.


FHL owns 50.2 per cent of Fiji Industries, South Pacific Limited 47.3 per cent and the balance is owned by 43 shareholders.


South Pacific Cement is owned equally by Holcim New Zealand and Fletcher Building Limited of New Zealand. Fiji Industries is the sole manufacturer of cement in Fiji and also exports its products to Pacific Island countries.