BUSINESS NEWS
July 18, 2012 12:00:00 AM
  Follow @ Twitter

The Fijian Holdings Limited (FHL) today signed an agreement to own South Seas Cruises (SSC) and Blue Lagoon Cruises (BLC) for FJ$62.57 million.

FHL acting group chief executive Nouzab Fareed said prior to the acquisition of SSC, FHL had sold its wholly owned subsidiary Blue Lagoon Cruises (BLCHL) to SSC for FJ$12.57.

Fareed said BLCHL owns 93.2 per cent of BLC, a public company that owns and operate two luxury cruise ships along the Yasawa Group.

He said this is the largest acquisition ever by FHL following its acquisition of RB Patel Group in 2008.

The FHL Board valued SSC at FJ$50 million as a standalone company and as such the combined value of SSC and BLC is FJ$62.57 million.

The acquisition of 100 per cent of SSC from Marine Tourism Holdings (MTH) was also signed today where SSC will now become a fully owned subsidiary of FHL.

Fareed said they are very confident to have 100 per cent as a best option for SSC.

The FHL Board today also signed a management agreement between SSC and Cruise Whitsunday Pty Ltd (MTH), a subsidiary of MTH for a period of years.

FHL Group chairman Iowane Naiveli said the investment accelerate their strategy in growing the FHL portfolio in strong sectors of the tourism market that will continue to perform and provide positive return on investments.

FHL uses its cash at bank to pay for the initial $10 million today and another $20m will be paid within the next 60 days and the balance will be paid over a period of 7 years under an agreed repayment plan and interest rate.

Fareed said for the balance of payments for the remaining 7 years, 90 per cent collected revenue from SSC and BLC will be used for payment.

SSC executive director Roger Dold said he wanted to retire from the business and is excited about the agreement.

The management agreement will allow FHL to maximise its return on investment in SSC.

Fareed said based on their forecasted expectations of SSC , the first few years are expected to be challenging with the repayment of this investment.

However, he said they are positive that this will largely benefit shareholders in not too distant future,

By Ropate Valemei


 

Wiggle


PREVIOUS STORY
10-15% wage increase proposed for 10 sectors
NEXT STORY
FHL waives pre-emptive rights in BIL and FIL

Bookmark and Share
   




FIJI NEWS
Kiribati confirms $AUD 9.3m land dealKiribati president Anote Tong today confirmed that their piece of land in Vanua Levu was bought for AUD$9.3million from a church.
WORLD
'Green'-tinted SUVs at Seoul Motor ShowGas-guzzling SUVs, eco-friendly electric cars and the odd brave attempt to marry the selling points of both are taking centre stage at the biennial Seoul Motor Show.
TECHNOLOGY
Vodafone Fiji, Tonga telco in allianceVodafone Fiji and Tonga Communications Corporation today signed a strategic partnership alliance that will allow the Tongan company to leverage off the experience of their Fijian counterparts.
HEALTH/FITNESS
Clean-up day to curb dengue outbreakFiji's Ministry of Health has declared a clean-up day next Thursday for residents in the central division as it ups the tempo against a dengue fever outbreak currently experienced in the country.
SPORTS
Go one step higher, President tells 7s repsFiji's President Ratu Epeli Nailatikau today reminded members of the Vodafone Fiji 7s team and Telecom Fijiana team of the nation's expectations and urged the players to go a step higher.
ENTERTAINMENT
Rock Or Bust is AC DC's new albumAC DC has announced the release of Rock Or Bust, the band’s first studio album in six years.
NEWS SPORTS INFOTAINMENT SERVICES MOBILE EXTRA HOT TOPICS