Attorney General, Aiyaz Sayed-Khaiyum says with the recent issue of new shares, the Fijian Government is the majority shareholder of Fiji Airways holding now 74.56 percent of the entire issued share capital.
While tabling the motion that Parliament approve the increased Government guarantee to Fiji Airways borrowings, Sayed-Khaiyum gave the background that on 9th August 2021, Fiji Airways had an extraordinary general meeting where it notified shareholders of the intent to raise equity of $200 million to raise cash to support itself through the COVID-19 pandemic period.
He says the Fijian Government had a pro-rata entitlement of 24 million 170,428 shares at $4.22 which amounted to $102 million.
Sayed-Khaiyum says the Fijian Government subscribed for the 24.2 million shares by utilising the one off fee owed by Fiji Airways as part of it’s contribution for the shares while the remaining $7.6 million was paid for in cash.
He says this increased the Fijian Government’s overall shareholding in Fiji Airways from 51 percent to 74.56 percent.
The Attorney General says other shareholdings in Fiji Airways includes Qantas Airways with 24.04 percent of the shares, Air New Zealand 1 percent, the Government of Kiribati 0.14 percent, the Government of Tonga 0.14 percent, the Government of Samoa 0.06 percent and the Government of Nauru 0.05 percent.
Sayed-Khaiyum has moved that Parliament approve the increased Government guarantee to Fiji Airways borrowings by increasing the existing local approved guarantee from FJ$191.1 million to FJ$241.1 million and the offshore borrowings from US$117.1 million to US$142.1 million with the total guarantee ceiling increasing from FJ$455 million to FJ$561.4 million valid until the guaranteed facilities are discharged or fully settled; and that Fiji Airways be exempted from paying a guarantee fee.
He says if we did not have a national carrier, the changes for tourists to come to Fiji from December 1st would have been hugely undermined.
/+AUDIO-21533374617214be52dc8982a0d07b.mp3+AUDIO/
Sayed-Khaiyum also says it has really concerned him that the Opposition does not see the big picture.
/+AUDIO-1481604426617214b08ff48ff13992.mp3+AUDIO/
Debate on the motion continues in Parliament.
