As predicted by Coupfourpointfive two weeks ago, Fijian Holdings Limited has terminated its acquisition of BP South West Pacific Oil.
Two weeks ago FHL Managing Director Sereana Qoro confidently announced that the deal to purchase BP Oil for $190 million was delayed but definitely on.
But in a statement issued this afternoon, Qoro says the $25 million deposit they paid to BP to confirm the buyout will be returned.
In her statement Qoro says FHL exercised "its best endeavours in dealing with international banks but the delay was beyond our control". This confirms our theory that the firm had failed to acquire a loan for the massive deal.
It also confirms that BP Oil operations was over-valued. We had reported that BP Oil Fiji was valued at $100 mllion but FHL had signed a deal to buy the company for $190 million.
In May FHL sold its bluechip shares worth $40 million in Fosters Group Pacific to Fosters in a bid to raise more funds for the buyout.
Qoro says the $40 million from Fosters shares sale and $25 million deposit to be returned by BP places FHL "in a much stronger position in terms of Cash Flow and Net Asset position".
Three weeks ago the FHL Board ordered its Chairman Isoa Kaloumaira, Deputy Chairman Colonel Mohamed Aziz and Sereana Qoro to go on leave for five days to make way for a corporate governance audit.
Simultaneously, the regime announced it was going to conduct the audit and in the process it usurped the regulatory powers of Capital Markets Development Authority.
The audit was completed in 3 days just like Mahendra Chaudhry's $2 million stash inquiry and all three resumed duties.
The report has not been made public - which should have been released to the shareholders.