Local Fiji firm, Fijian Holdings Limited (FHL), has bought BP South-West Pacific for $190 million.
According to Fiji Times Online, FHL chairman, Isoa Kaloumaira, 'announced that historic deal after signing the sales and purchase agreement in Suva' on Thursday, making it the 'largest investment FHL has undertaken in its 24-year life'.Mr. Kaloumira stated that the "newly acquired BP SWP business includes 67 retail outlets and related operations in Fiji, Tonga, American Samoa, Cooks Tuvalu and Vanuatu".
"The strategic investment will make FHL one of the largest corporate entities with a total staff strength exceeding 1,500 and a consolidated revenue exceeding $600M from 2010 onwards."
'FHL Energy Limited, a fully-owned subsidiary of Fijian Holdings Ltd, successfully won the bid to acquire the oil company' and this 'is the first time a oil company will be owned locally' in Fiji.
According to the report, FHL has engaged Hindustani Petroleum Co. Limited, which 'is a public listed Fortune 500 company, the second largest oil company and generates annual revenue of $US27-billion (FJ$46m)', to manage and operate the new oil company.
'FHL chief executive officer Sereana Qoro said the acquisition would be funded through debt and equity', stating that they "are talking to our local banks, some of them have been very supportive".
'She added there could be an overseas bank involved but would not be significant as most funding would be sourced locally'.