MRDC Group announce acquisition of BSP shares

The Mineral Resources Development Company [MRDC] today announce that the Group has increased its shareholdings in Bank South Pacific Financial Group Limited [BSP] by acquiring a large portion of the bank’s shares that were on offer to the public by the Motor Vehicle Insurance Trust [MVIL].

MRDC Managing Director Mr Augustine Mano confirmed the purchase of 70 per cent of the shares sold by MVIL through the Port Moresby Stock Exchange.

As a result of this acquisition, an incremental boost in MRDC Group’s shareholding in BSP from 13 per cent to 15 per cent underscores landowner companies expanding position, making it the second largest shareholder after Kumul Consolidated Holdings.

“BSP is the best performing blue-chip company and recognized financial institution in the pacific region, providing consistent shareholder returns. It has always been our desire to increase our shareholding,” Mr Mano said.

He said 12 of the subsidiaries of MRDC participated in the shares purchase. They include Petroleum Resources Kutubu [PRK], Petroleum Resources Gobe [PRG], Petroleum Resources Moran (PRM), Gas Resources Gigira (GRG), Gas Resources Hides No 4 [GRH No 4], Gas Resources Juha (GRJ), Gas Resources Angore [GRA], Gas Resources PNGLNG Pipeline [GR Pipeline], Gas Resources PNGLNG Plant Site [GR Plant], Mineral Resources Ok Tedi [MROT2], Mineral Resources Star Mountains [MRSM] and Mineral Resources Community Mine Continuation Agreement [MRCMCA]

“The Boards of each of these subsidiaries made the decision to buy the shares, and the funds came from each of their Future Generations Trust Funds,” Mr Mano said.

Following the strategic acquisition, four MRDC subsidiaries – PRK, GRG, MROT and MRSM had surged – elevating into BSP’s top 20 ranked investors by equity share, with PRK being the third largest shareholder.

Mr Mano said the shares were bought at prevailing market price, through the broker JMP.

He said the acquisition by MRDC ensures the shares offered by MVIL did not fall into foreign hands.

“BSP is a listed company. If we didn’t acquire the shares, there is always the possibility of some foreign entity buying those shares and increasing foreign ownership of BSP.”