Govt all set to sign Vodafone deal

Business, Normal
Source:

The National, Monday 15th April, 2013

 Reports by GYNNIE KERO

THE national government is expected sign a multi-million kina deal tomorrow with Fiji to bring Vodafone into the PNG market.

Fijian High Commissioner to PNG Romanu Tikotikoca told The National that Prime Minister Voreqe Bainimarama would be signing several memoranda of understanding with the PNG government, including the deal to bring in Vodafone.

Bainimarama will be accompanied by Minister for Trade and Industry Aiyaz Sayed-Khaiyum and Minister for Foreign Affairs Ratu Inoke Kubuabola during his state visit to the country.

A spokesman for Public Enterprises Minister Ben Micah confirmed that the deal to restructure shareholding in bemobile would be signed in Port Moresby tomorrow. 

A trade delegation from Fiji is also here in Port Moresby for one week of talks with local counterparts on how to further strengthen business and trade between the two countries.

Representatives of the Fiji National Provident Fund (FNPF), which owns majority shares in Vodafone Fiji, are also in the delegation.

Although no confirmation could be obtained from the go­vernment, industry sour­ces said the Independent Public Business Corporation (IPBC)  would own 51% shareholding. 

The FNPF, which represents the workers of Fiji, is expected to invest capital to take a 41% stake.

Existing shareholders including Nasfund, Nambawan Super and PNGSDP are also expected to hold the remaining 8%. 

It is understood a total of K550 million of new investment will be injected into bemobile as a result of the deal, positioning bemobile as the largest future mobile telecommunications investor in PNG and Solomon Islands.

Vodafone Fiji is expected to manage the companies under a management contract.

The deal was endorsed by the national government a few weeks ago, after negotiations in Austra­lia between representatives of the IPBC, Asian Development Bank, the PNG super funds, FNPF and Vodafone Fiji.

Sources said the deal also ensured Vodafone would also enter the Solomon Islands market. 

As previously announced by Prime Minister Peter O’Neill, the deal means that the government and people of PNG, through the IPBC, will invest capital and increase its share in both bemobile PNG and Solomon Islands.