Fiji’s sugar debt to be converted into shares
The Fijian government owns 68.11 percent of the shares, while the Fijian National Provident Fund (FNPF) and Fijian Holdings Limited (FHL) respectively hold 17.59 percent and 8.86 percent of the shares.
Fiji Sugar Corporation’s Lautoka factory on October 27, 2021. Photo: Salote Qalubau.
The debt of Fiji Sugar Corporation of $ 173.8 million will be converted into shares, said Shiri Gounder, acting permanent secretary for the economy.
This is an initiative to strengthen the balance sheet of the Fiji Sugar Corporation, as announced in the COVID-19 response budget.
The Fijian government owns 68.11 percent of the shares, while the Fiji National Provident Fund (FNPF) and Fijian Holdings Limited (FHL) hold 17.59 percent and 8.86 percent stock, respectively.
Other minority shareholders hold 5.44 percent stock.
“In order to proceed with the conversion of the debt into shares, the government made sure to obtain 100% of the shares of Fiji Sugar Corporation,” Gounder said.
âUndertaking a debt to equity conversion without first obtaining a full 100% stake would have further diluted minority shareholders.
âMinority shareholders are protected by the Companies Act. “
Mr Gounder said the Fijian government started by acquiring shares held by the Fiji National Provident Fund and Fijian Holdings Limited.
âFollowing the acquisition of these shares at $ 0.005 per share, the Fijian government now has a 94.56 percent stake in Fiji Sugar Corporation, âhe said.
With over 90 percent shareholding, the government offered the same price of $ 0.005 to compulsorily acquire the remaining minority shares, Gounder said.
âThis is in accordance with the provisions of the Companies Act.
“The offer price was based on the company’s valuation and the inherent risk and burden borne by the Fijian government as the majority shareholder.”
Mr Gounder said the Fijian government was the sole shareholder providing financial support to the Fiji Sugar Corporation through grants, loans and guarantees.
Lautoka Crushing End Set
Meanwhile, the Devanesh Sharma Sugar Industry Court ordered the company to end grinding at the Lautoka plant on November 3, 2021.
A statement from the Fiji Sugar Corporation said the ordinance followed consultations with the managing director of the Council of Sugar Cane Producers and the managing director of the Fiji Sugar Corporation.
The FSC said the Sugar Industry Tribunal asked all producers and gangs in Lautoka Mill to make every effort to harvest all the cane and deliver it to Lautoka Mill by Wednesday, November 3, 2021.
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