State expects windfall

 THE Government expects a windfall of about K430 million when Sime Darby acquires New Britain Palm Oil Limited (NBPOL)

Public Enterprises Minister Ben Micah announced that in Parliament yesterday, when responding to questions from Milne Bay Governor Titus Philemon.

Micah said the London Stock Exchange had approved Sime Darby’s takeover of NBPOL at 7.15 pounds per share.

He said Sime Darby had decided to acquire all the shares of smaller shareholders.

The PNG Government, through Independent Public Business Corporation (IPBC) owns 3 per cent and the West New Britain provincial government owns 8 per cent.

“NBPOL started as Harrison Crossfields in the 1960s in West New Britain. Over time as the ownership changed hands, it expanded into Oro, Milne Bay, Morobe and Solomons Islands, with mills in London,” Micah said.

“It’s grown into a very large fully integrated agriculture company, with emphasis in sugar, beef, and oil palm.

“Through listing on the stock exchange, ownership has changed hands over time. Today, Kulim is the major shareholder.

“Sime Darby is a giant and it is bidding for all of Kulims shares, and all other smaller shareholders who together hold 18 per cent. The London Stock Exchange has approved the deal, so we will receive K130 million from the State’s 3 per cent.”

He said from its 8 per cent, the WNB provincial government will receive about K300 million.

Micah said part of the condition of the acquisition was that it was not contrary to PNG’s national interest.

“Sime Darby will delist after the takeover. The Prime Minister has approached the company to sell back 30 per cent to the government of PNG at a discount price. We will pursue this in negotiations with the company,” he said.