On the 4 January 2022, the Acting Managing Director of Kumul Consolidated Holdings (KCH) David Kavanamur, presented Chief Executive Officer of Nasfund, Ian Tarutia and his Investment Team with the Information Memorandum for the partial privatisation of Telikom Limited. The same Information Memorandum has been sent to the Chief Investment Officer of Nambawan Super Limited, 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, Honorable William Duma, KCH Chairman and Board of Directors, it gives me great pleasure to present this Information Memorandum. This is a substantial step forward in this SOE reform initiative and represents weeks of preparation, review, and assessment. This fulfils our Government’s directive to commence steps to partially privatise the state-owned telecommunications company, Telikom Limited, and reduce the state’s control to a minority position,” stated David Kavanamur.

“The National Executive Council Decision number 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 Limited, supporting the advancement of products and services for the benefit and welfare of our citizens. Further, this SOE reform initiative will contribute the improvement of socio-economic development opportunities and growth under the Marape Government,” said the Acting MD.

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 local Institution to partner with the State to explore opportunities for nation building in this critical telecommunication infrastructure of our country Papua New Guinea.”

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 privatization initiatives, such as PNGBC to BSP,” said Ian Tarutia. “We recognise the significance of this step and thank the Managing Director and his team for their tireless efforts, to date.”

An aggressive timeline has been adopted to progress the due diligence and transaction assessment program, with recommendations expected before the end of the March, 2022.

David Kavanamur PhD

Acting Managing Director