2 Oct 2012

Samoa poised to take over Pacific Forum Line

5:02 pm on 2 October 2012

The Samoa government is in the process of purchasing all shares in the Pacific Forum Line shipping company.

The Pacific Forum Line is a South Pacifc regional shipping service, with 12 Pacific governments holding shares in the company.

Leilani Momoisea reports.

"The chief executive of Pacific Forum Line, Henning Hansen, says on Friday the Samoa government, which is an 8 percent shareholder in the company, signed on to acquire the remaining 92 percent. The chair of the Pacific Forum Line's board in Samoa, Patrick Fepulea'i, confirmed that a purchase of sale agreement has been signed. He says a settlement is yet to be finalised, but this is expected to happen next Monday and he is unable to comment further. New Zealand company Sofrana had put in an offer to purchase the company but says it's understood the government of Samoa invoked its right to acquire the outstanding shares. Henning Hansen says there is no sale to Sofrana, because the Samoa government will own all shares in the Pacific Forum Line. New Zealand has 23 percent of the company, but the Foreign Minister, Murray McCully has said the company no longer fulfils a number of its obligations."