Shareholder supports proposal

The National Business

By SHIRLEY MAULUDU
A SHAREHOLDER of PNG Air is in support of the recent proposal by Link PNG to acquire 60 per cent of PNG Air Ltd.
Teachers Savings and Loans Society (Tisa) chief executive Michael Koisen told The National yesterday that Tisa, as a shareholder in PNG Air, was optimistic.
Tisa owns up to about seven million shares which equates to 2.31 per cent of the total shares of PNG Air.
“From a shareholder’s perspective, the acquisition of PNG Air by Link PNG is a welcomed proposal,” Koisen said.
“PNG Air is owned by ordinary Papua New Guineans, primarily through institutional shareholders.
“Currently, the only value PNG Air offers for ordinary Papua New Guineans is cheaper airfares, additional flights, jobs and outsourcing to various service providers.
“Other than that, it offers no other value.
“For the acquisition to be palatable the proposal must maintain these values and add shareholder value.
“There are synergies that both airlines can benefit from including PX Link with its strength in RPT (regular passenger traffic) and PNG Air with its strength in charter operations.
“The acquisition will also result in shared services in other critical functions and a reduction in operating costs that will contribute to improved returns to shareholders.
“Under the circumstances, I presume the acquisition will not involve cash.”
Koisen said the acquisition transaction would set the stage for public-private partnership through the entry of private equity into Link PNG in the form of institutional shareholders.
“The silver lining in these difficult economic times is that we currently have a winning combination of people such as Minister (Sasindran) Muthuvel in charge of SOEs (state-owned entities), chairman of KCH (Kumul Consolidated Holdings) Peter Aitsi, MD (managing director) of KCH Isikeli Taureka, Air Niugini chairman Sir Kostas (Constantinou) and acting managing director Bruce Alabaster,” he said.
“This line-up of experienced business leaders sets the stage for reform in the aviation sector.
“Under a Government that is pro-reform and in the wake of a pandemic driven economic recession, now is the time for businesses to reposition and reform and prepare for new opportunities.”