NASFUND has acquired 20% equity in Hornibrook NGI Ltd.
The super fund said the acquisition was based on “a number of sound reasons, including Hornibrook’s commitment to excellence and social responsibility by looking after its workforce”.
Nasfund and Hornibrook, in a joint press statement announced yesterday, that Nasfund has purchased 20% equity in Hornibrook NGI on a share purchase and share placement arrangement.
Hornibrook is one of PNG’s leading construction companies with over 400 Papua New Guineans and a turnover of over A$60 million per annum.
It is also one of the country’s leading construction and equipment hiring firms.
Nasfund chief executive Rod Mitchell said that Hornibrook “forms part of Nasfund’s long-term equity investment strategy”.
“We identified Hornibrook for a number of sound reasons. It’s strategically placed to take an even larger slice of the construction and development market not only in Lae but also in Port Moresby.
“Its reputation for quality and deliverability meant an ever increasing demand for their expertise in steel fabrication and building construction,” Mr Mitchell said.
He also said Nasfund, like Hornibrook, “understands good governance, had commitment to excellence and social responsibility and they look after their workforce”.
Mr Mitchell said these were essential ingredients that Nasfund looks for in selecting growth investments.
Nasfund said that the long-term aim would be to see the company listed on the Port Moresby Stock exchange within the next three to five years.
One of the Hornibrook’s equity owners Sherron Lewis said: “To us selecting Nasfund as a shareholder was a convergence of like-minded people.
“We are pleased that in moving forward, part of Hornibrook will be owned by over 95,000 private sector workers through their superannuation.
“And it means the company takes on a much stronger Papua New Guinean identity.”
Asked what the placement of shares in Hornibrooks was to be used for, Mrs Lewis said: “The business is expanding with the signing of the purchase of the Awilunga Estate from Steamships Ltd.
“This site covering 50ha with mixed used residential and industrial spaces will contribute greatly to our ongoing development and production requirements over the next three to five years.”