IPBC boosts bemobile stake

 By SHIRLEY MAULUDU

THE Independent Public Business Corporation (IPBC) has become 85% owner of bemobile in a subscription deal signed last week. 

Public Enterprises and State Investment Minister Ben Micah said during the signing the PNG government was committed to getting the state-owned entity back on a competitive telecommunication market.

“In spite of the issue with potential partners from Fiji, the government is committed to getting bemobile back on its feet … bemobile is not dead … it is still in competition and it will bring tension to the telecommunication market,” Micah said. 

IPBC has invested US$88.2 million (k220 million) additional funding to recapitalise the telco and upon the completion of its share subscription, IPBC will have four positions on the new bemobile board.  

IPBC managing director Wasantha Kumarasiri thanked the other existing shareholders of bemobile — Capital Way and Asian Development Bank — for the flexibility shown and their approval to allow IPBC to receive shares.

“The state investment is now increased to 85% from 47.1% and is a majority PNG- owned company,” he said.

Kumarasiri said the new board will deliberate on the network stabilisation plan and resourcing the business adequately to provide an improved service in the weeks and months to come. 

Outgoing chairman of bemobile Syd Yates said PNG needed a competitive telecommunication market and stability in the company had improved. 

Micah announced that the purchase of shares would be open to the public. 

“The public is encouraged to buy and own shares in the bemobile company … bemobile is a majority state-owned company and the people must also take ownership and benefit from it,” he said.