Parties conducting due diligence into new deal

By DALE LUMA
NATIONAL Superannuation Fund (Nasfund) chief executive officer Ian Tarutia says efforts are being taken to ensure that the expectations of all parties involved in the Telikom Ltd’s partial privatisation are met.
Tarutia told The National that he could not go into details but a due diligence process was underway by Nasfund and its consortium partners after they received an information memorandum from Kumul Consolidated Holdings (KCH) to invest in Telikom.
He said the fund and its partners were now assessing the group (Telikom Ltd) with all its subsidiaries.
“The information memorandum has been received from KCH,” Tarutia said.
“Our consortium and KCH have signed a memorandum of agreement to conduct due diligence and assessment of the group and its subsidiaries.
“This process has commenced.
“At this stage, the non-disclosure clauses in the agreement do not allow us to elaborate, except to say that considerable effort is being undertaken to ensure that a suitable investment is structured that meets the expectation of all parties – Nasfund, consortium partners and KCH on behalf of the State.” It is understood that a timeline has been adopted to progress due diligence, and transaction structuring and negotiation, with recommendations expected before the end of March, in time for a Cabinet approval.
KCH acting managing director David Kavanamur said it was a “substantial step forward in the SOE reform initiative and represents months of preparation, peer review, and assessment”.