JANUARY 5TH 2022
Kumul Consolidated Holdings (KCH) has presented Information Memorandum for partial privatisation of Telikom Ltd to the two major superannuation funds.
Acting Managing-Director of KCH David Kavanamur on Monday (January 4 2022) presented Chief Executive Officer of Nasfund, Ian Tarutia, and his Investment Team with the Information Memorandum.
The same Information Memorandum has been sent to the Chief Investment Officer of Nambawan Super Ltd (NSL), David Kitchnoge, inviting NSL to consider this investment opportunity.
“As the trustee shareholder representing the Government of Papua New Guinea, on behalf of the Minister of State Enterprises, Hon. William Duma, KCH Chairman and Board of Directors, it gives me great pleasure to present this Information Memorandum,” Acting MD Kavanamur said.
“This is a substantial step forward in this SOE reform initiative and represents months of preparation, peer review, and assessment. This fulfils our Government’s directive to commence steps to partially privatise the State-owned telecommunications company, Telikom Ltd, and reduce the State’s control to a significant minority position.
“The National Executive Council Decision No. 410/2021 provided the approvals necessary to progress this reform agenda. By the exchange of documents today, we undertake to work diligently towards a transaction that represents the best interests for both the shareholder and the SOE. We look forward to the opportunity to establish a new trajectory of growth and sustainability for Telikom Ltd, supporting the advancement of products and services for the benefit and welfare of our citizens. Further, this SOE reform initiative will contribute to the improvement of socio-economic development opportunities and gross domestic product growth under the Marape Government.”
Ms. Fiona Nelson, Chief Investment Officer of Nasfund, accepted the Information Memorandum on behalf of the company.
“I would like to thank the Government of Papua New Guinea, the Prime Minister and the Minister for State Enterprises for the opportunity to review this transaction with KCH. I thank the Government for its trust in Nasfund, as a leading local Institution to partner with the State to explore opportunities for nation building in this critical telecommunication infrastructure of our country,” she said.
Both the KCH investment team and Nasfund investment team will work collectively to progress the critical steps to develop the transaction to completion within agreed timeline.
“We understand the value and importance of this undertaking and we look forward to developing successful outcomes, similar to past State-owned partial privatisation initiatives, such as PNG Banking Corporation to Bank South Pacific,” said Nasfund CEO Tarutia.
“We recognise the significance of this step and thank the Managing Director and his team for their tireless efforts towards this outcome.”
An aggressive timeline has been adopted to progress the due diligence, and transaction structuring and negotiation, with recommendations expected before the end of March, 2022, in time for Cabinet approval.