Biggest Private Equity Company Established – Kroton Equity Holdings Ltd
By Hela Governor Philip Undialu
In a low key signing ceremony, Governors Hela – Hon. Philip Undialu, Western – Hon. Taboi Awi Yoto, SHP – Hon. William Powi, Gulf – Hon. Chris Haiveta and Central – Hon. Robert Agarobe today signed up to have the company Kroton Equity Holdings Ltd (KEHL). The ceremony was witnessed by Mr. Wapu Sonk, Managing Director of Kumul Petroleum Holdings Ltd.
The Kroton Equity Holdings Ltd (KEHL) will be the first and biggest Private Equity Company in PNG. KEHL will be owned by the five Provincial Governments (Hela, SHP, Gulf, Western and Central) and landowners of PNGLNG Project. KEHL will hold 4.27% of the PNGLNG project interest.
The five Governors in a joint statement, thanked Prime Minister James Marape for walking the talk in the “TackBackPNG” slogan and fulfilling the promise to empower Provincial Governments and landowners. Transfer of the 4.27% Kroton Equity is testament of PM honouring his commitment.
“The five Governors today signed documents to formerly establish the company. The KEHL is expected to generate between K300m to K500m depending oil price. There’s no better gift than this that the Government can offer to the provinces and landowners impacted by the PNGLNG province”, they agreed.
The Governors want to see KEHL grow and be a player in the country and regional in the private equity and financial sector with sound corporate structure and investment policies.
They appealed to the Prime Minister to free up any single attachment with State nominees like KPHL and MRDC and be completely free from political interference. They want to see competent people or organizations engage to help establish and manage the company.
The Governors also thanked former Prime Ministers in late Grand Chief Sir Michael Thomas Somare for the decision to allocate this equity at the Umbrella Benefit Sharing Agreement (UBSA) and Hon. Peter O’Neill for reducing some price.
“It is Prime Minister Marape that is finally freeing up this long waited equity interest and he deserve credit for it”, Governors said
Governor Undialu who was at the forefront pursuing this matter since 2012 said, he has fought hard with the previous Government, turned tables in Sydney and joined hands with likeminded leaders to change government in 2018 so what is owed to his people is given without hesitation. Governor Undialu whilst thanking PMJM and his Pangu-led Government appealed to the landowers not to think about just today.
It’s about time, landowers and Provincial Governments invest in sustainable investments that will continue to yield revenue after oil and gas are depleted. He wants to see the Company is managed professionally, prudently, with sound policies and guiding principles that will help grow and sustain over time.
Prime Minister James Marape is expected to issue share certificates to respective Benefitiary Groups during the April Parliament Session.