ICCC probes shares purchase

The National National

By LOTTIE WAYAGURE
The Independent Consumer and Competition Commission (ICCC) will start an investigation into an international organisation buying more than 50 per cent share in the Port Moresby Stock Exchange without notifying it.
“Pacific Capital Markets Development Pty Ltd bought Bank South Pacific Capital Ltd’s 62.5 per cent shareholding and notified ICCC after the transaction was made” ICCC chief executive Paulus Ain said.
Ain said last Friday that businesses should apply for clearance or authorisation from the ICCC to safeguard their parties from potential legal action
“On July 25, the ICCC Act was amended by parliament, making it mandatory for parties to a merger or an acquisition to give notice seeking clearance from the ICCC if the merger or acquisition fell within certain thresholds,” Ain said.
These thresholds are:

  • The transaction value of the merger or acquisition exceeds K50 million; or
  • The merger or acquisition is likely, or would be likely, to result in a market share increase of 50 per cent or more of the person who is acquiring.
    He said BSP and Pacific Capital may have complied with other relevant legislations and regulatory processes, but it was important for both parties to seek ICCC’s clearance or authorisation on the acquisition if and when the percentage was more than 50 per cent.

“I am really concerned that the parties have decided not to seek a clearance or authorisation from the ICCC knowing very well the requirements under the ICCC Act,” Ain said.
“The concerning thing is that the two parties completed the acquisition then notified us, ICCC Act only applies to proposed acquisitions, not completed acquisitions” said Emmanuel Auru, ICCC’s merger and acquisition competitive market and fair trade manager.
Failure to notify or seek clearance from the ICCC will result in an automatic fine of K750,000 per the new amendment once gazette.