Credit Corp acquisition ‘strategic move’

 BANK South Pacific Group chief executive officer Ian Clyne has described the potential acquisition of Credit Corporation Ltd as a “strategic move”.

BSP in late January made a non-binding offer of K250 million to acquire Credit Corporation (PNG) finance and leasing business.

The acquisition is conditional on completion of  a successful due diligence, various regulatory approvals in Papua New Guinea, Fiji, the Solomon Islands and Vanuatu, shareholders’ approval and the parties agreeing on the terms of, and entering into, agreed transaction documents.

“Credit Corporation gurantees about K21 million in PNG and we would like to think that if we are successful in the acquisition, then we could support Credit Corporation to be more active in terms of lending,” Clyne said.

“And obviously, having Credit Corp in Fiji, the Solomon Islands and a new territory being Vanuatu will allow us to strengthen our businesses and enter Vanuatu for the first time.”