Fiji National Provident Fund (FNPF) has successfully acquired 20 per cent of Energy Fiji Limited, becoming a major shareholder of the company.

The Fund has invested $200 million for this transaction and is expected to have one seat on the management board.

During the announcement yesterday, fund chairperson Ajith Kodagoda said: “The Fund had used international and independent advisors for this transaction, ensuring that the board was properly advised on this acquisition.”

“FNPF invests long term for the future benefits of its members. Members will benefit from dividends annually (with the first dividend payout next year) and also from the appreciation in the value of these shares over time,” he said.

“There are also exciting opportunities in renewables and other growth opportunities that will further benefit this investment.

“The fund has been looking at opportunities offered through Government’s share divestment programme for some time,” Mr Kodagoda added.

“EFL has stable revenues and the energy demand in the country is increasing year by year. The past four years the electricity demand has increased by more than 15 per cent,” Mr Kodagoda said.

A ‘billion-dollar asset’

Speaking on behalf of the Prime Minister Voreqe Bainimarama Attorney-General Aiyaz Sayed-Khaiyum emphasised that Energy Fiji Limited was already a billion-dollar asset company and manages some of the most vital pieces of Fiji’s infrastructure network.

“FNPF’s savviness in pursuing this investment shouldn’t only be noted by our potential divestment partner.

“Soon anyone will be able to take an interest stake in EFL both before and after our public listing of the company on the South Pacific Stock Exchange,” he said.

“FNPF’s proven merit in growing and managing a diverse portfolio of fixed and growth assets, including resorts, banking institutions, telecommunication companies, port management and residential and commercial properties across the country will add value to EFL’s already steady and steadfast financial management,” Mr Sayed-Khaiyum said.

However, Fiji looks to lead by example on the world stage in transitioning away from dependence on harmful fossil fuels towards clean energy sources.

“We urge EFL and its shareholders to continue to pave the way for co-investments in renewable energy projects, building on EFL’s array of hydro and wind power assets,” he highlighted.

Energy Fiji Limited chairperson Daksesh Patel said that the company is looking to the untapped economic value that needs to be unlocked within EFL.

Edited by Susana Tuilau

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