Owners want shares

 MAJOR shareholders of Airlines PNG yesterday said they wanted new shares to increase their stake in the airline firm.

Airlines PNG confirmed receiving requests from Ok Tedi Landowners, Fly River provincial government, Mineral Resources Development Company and NASFUND to increase their respective shareholdings.

This new investment is in response to a decision by Airlines PNG’s board to recapitalise the company and set it on a path to financial security and growth.

As an integral part of the overall restructuring of the airline’s ownership, the company’s founder and major shareholder Sir John Wild has agreed to the majority of his shares in the airline being cancelled, thereby making way for the increased shareholding by institutional shareholders.

Sir John said: “In order to ensure the long term sustainability of Airlines PNG and facilitate further capital raising by the company I am happy to gift a significant portion of my shares back to the airline. This fulfills a dream of mine to see the airline majority owned for the people of PNG and strongly positioned to carry on its services to the country.”

Following the buy-back of Sir John shares and the issue of new shares, Airlines PNG will be majority owned by PNG institutions. 

Existing shareholders in the company will be given the opportunity to increase their holdings on similar terms to those agreed with the institutional investors.

The airline continues its focus on providing safe, high quality, competitive regular passenger services to the people of PNG. 

Airlines PNG’s chief executive Muralee Siva said: “Our commitment to serving the needs of the PNG travelling public remains the cornerstone of our operations. 

“With greater involvement now from institutional shareholders and the continued support of the people we will ensure much needed competition in air transportation services is available to assist in developing this great country.”

Over recent years APNG has restructured its business by focusing on the domestic market, where it has expanded its regular passenger services significantly. 

It remains uniquely placed to capitalise on opportunities in the aviation charter market as significant contracts in the resource sector are awarded.