Firm makes stance

THE Credit Corporation (PNG) Ltd’s board has unanimously resolved that an in specie distribution of Bank of South Pacific shares is not in the best interests of the company at this time, according to the company.
Credit Corp said the board arrived at the resolution after completing its review of the likely impacts of a potential in specie distribution of the shares held by the company in Bank of South Pacific Ltd.
This was in response to the non-binding shareholder resolutions passed at the annual general meeting on June 27.
The non-binding resolutions proposed by the Teachers Savings and Loan Society Ltd sought, among other things, the appointment of an independent expert to determine whether the company would satisfy the solvency test if the proposal was implemented.
As noted in earlier market announcements on this issue, any consideration of the proposal required a broader review to be undertaken by the board to ascertain the financial, strategic, taxation and legal implications and risks that the proposal would have for the company and the broader group, if it was implemented.
Credit Corp chairman Syd Yates said: “The review process has been comprehensive and the board is committed to ensuring that the company is best positioned for sustainable long term growth.
“Credit Corporation, as a homegrown PNG financial services company, has played a significant role in PNG’s and the South Pacific’s economic life for more than 40 years, building a trust throughout the region.”