Squire Patton Boggs has advised the Government of the Republic of Fiji on the disposal of 44% of the issued share capital of Energy Fiji Limited (EFL) to Sevens Pacific Pte Limited (SPPL). SPPL is a special purpose vehicle incorporated by a consortium of Japanese investors comprising The Chugoku Electric Power Co., Inc. (Chugoku Electric) and Japan Bank for International Cooperation (JBIC). SPPL acquired the 44% interest in EFL for approximately FJ$440 million (A$287m), valuing the company at over FJ$1 billion (A$653m).
EFL is responsible for the generation, transmission and sale of electricity on the larger islands of Fiji. Squire Patton Boggs previously advised the Government in connection with the privatization of EFL, along with the initial divestment of 20% of EFL to the Fiji National Provident Fund in 2019 and a public offer of 5% of EFL to a broad base of eligible Fijian citizens.
On completion of this transaction, the Government will retain a controlling interest of 51% of the company while bringing on board financial and operational partners with deep operational expertise and experience in electricity generation networks. The transaction is intended to support the Government’s goals of expanding project delivery experience within EFL to meet the growing electricity demands of Fiji, to work towards Fiji’s renewable energy targets and continue to provide efficient, reliable, renewable and affordable electricity to all Fijians.
Partners Simon Rear (Perth) and Ken Kurosu (Tokyo) co-led the team, supported by senior associate Michael Van Der Ende and associate Connor McClymont. Nagashima Ohno & Tsunematsu advised the acquirer.
Mr Rear said “This transaction represents the culmination of a strategy five years in the making and it is very satisfying to see it reach fruition. We thank the Government for choosing us to represent its interests in such an important project and look forward to the next chapter in Fiji’s energy transformation.”