29 Mar 2007

National Bank Solomon Islands owner's take shareholding in PNG's Bank South Pacific

9:07 am on 29 March 2007

The local owners of the National Bank of Solomon Islands, the NBSI, are to take a shareholding in Bank South Pacific when it buys their business.

The NBSI managing director, Peter Goodwin, says an offer is on the table from the Papua New Guinea bank to buy 100 percent of the shares and they're expecting that to go through by the end of the week with settlement in April.

He says the shareholders, which include the Solomon Islands National Provident Fund and three local trusts, have agreed to the sale.

Mr Goodwin says they have also agreed what to do with the proceeds.

"Rather than being awash with cash after their sale of their shares, and not being able to invest those funds productively in this market, the trusts and NPF have the opportunity to take a significant shareholding in Bank South Pacific. And, that's what they've decided to do so in some respects, the local shareholders do retain an interest in this particular business."

Peter Goodwin, the managing director of NBSI.