Corporation turned down offers to pay off investment in Fiji

THE Pearl Harbour Resort in Fiji was returning more than 40 per cent of PNG’s investment in five years but shareholders declined to sell it, Mineral Resource Development Corporation (MRDC) managing director Augustine Mano said.
In fact, two offers of US$18 million (then K320 million) were turned down, he said.
The offers were equivalent to a 43 per cent return on the investment in five years, Mano said.
Investment decisions are made by the board of trustees and not by the management of MRDC, he said.
Mano said the Pearl Habour was a landowner investment while MRDC had less than 14 per cent.
He said it was a trustee board decision to buy the investment in Fiji.
Mano said they had two offers of about US$18 million but the shareholders declined.
“The important thing to note is that the subsidiaries are landowner companies with their own trust board that makes investment decisions.
“If you want to measure return on investments then that is 43 per cent return on the investment in five years.
“A huge 43 per cent.
“If we sold it then, we should have made a huge profit, almost half the price in return,” he said.
He said if the company was not doing fine then why would shareholders decide not to sell it?
Meanwhile, Mano said MRDC had engaged an independent financial audit into the operation of the Star Mountain Hotel on its first anniversary.
He said the audit report would determine the performance of the company and that includes the occupancy rate, the financial performances and the entire operation of the hotel.
He said the report will be made know to all shareholders.