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Fiji Time: 3:57 AM on Saturday 2 August

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$6m chip deal

Timoci Vula
Friday, November 09, 2012

FIJI-owned investment company Fijian Holdings Limited (FHL) has signed an investment funding agreement with Tropik Wood Industries.

The signing between the two companies last month includes FHL's provision of a five-year term investment facility of $6.70 million to Tropik Wood at a fixed rate of return.

The investment facility will be used by the Fiji Pine Group — the parent company of Tropik Wood — to fund the acquisition of chipping equipment at Wairiki Plant, and that the loan was secured on those newly acquired assets.

FHL said the investment would ensure profitable operation of pine chipping at the Wairiki facility in Bua, Vanua Levu.

"This is a new landscape for FHL as this is the first time we have made an investment of this nature," FHL chairman Iowane Naiveli said.

"We are privileged to be associated with Tropik Wood Industries Ltd on this transaction. This is a secured transaction at a competitive rate of return," Mr Naiveli said.

Fiji Pine Group executive chairman Faiz Khan acknowledged the FHL team for the provision of a complex transaction of that nature within a short period of time, and at a competitive rate.

He said the benefits would flow down to the people of Bua and Macuata through much more profitable operations at the Wairiki wood chip facility.

"We have recently developed the wood chip stocking conveyor and ship loading facilities at the site," Mr Khan said.

"With the current investment, we are acquiring the chipping plant through which we get 100 per cent control of the Wairiki Woodchip Facility," he said.

Fijian Holdings Limited recently released its annual report that revealed the group's 121 per cent increase in its consolidated profit for the 2012 financial year to net $14.54 million.

And its net profit before tax however, increased by 30 per cent to $14.32 million.

The holding company recorded a net profit after tax of $8.5 million this year compared to $7.5 million last year.


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