Govt to decide on Telikom deal

By DALE LUMA
THE Government will make a final decision on the partial privatisation of Telikom PNG Ltd, with the superfunds being given priority, says the Kumul Consolidated Holdings (KCH).
Acting managing director Professor David Kavanamur told The National that they were looking at the prices offered.
It is understood that superannuation funds have been given priority in the process.
Superfunds such as the National Superannuation Fund (Nasfund) and others are undergoing their due diligence process.
“The partial privatisation is an ongoing process that’s continuing with potential partners,” Kavanamur said.
“We have issued an information memorandum and they are continuing to undertake due diligence.
“We are looking at one partner and hopefully we should complete that. But (it’s) depending on what’s on the table, and what they are offering for the assets being offered on the market.
“There is a certain price that we are negotiating with the potential buyers.
“We will have to take it back to the Government and a final decision will be made.”
Cabinet in December approved the partial privatisation of Telikom assets valued at K1.4 billion.
In January this year, Prime Minister James Marape said the delivery of essential services required a more innovative approach by State-owned enterprises if they were to remain competitive.
“The partial privatisation of Telikom Ltd is a major step in the recapitalisation and monetisation of PNG’s non-oil, gas and mineral assets and an opportunity to broaden the ownership of the companies,” Marape said.
Nasfund executive officer Ian Tarutia told The National in December that the superfund had signed a memorandum of understanding with its consortium partners to invest in Telikom. It is understood the balance of Telikom’s shares would remain with the Kumul Consolidated Holdings and the bulk of the business which included the mobile and landline services would be sold.