Ashurst has advised the Independent Public Business Corporation of Papua New Guinea (IPBC) on the historic US$180 million corporate reorganisation of the mobile telecommunications carrier in Papua New Guinea (PNG) and Solomon Islands, Bemobile Limited, including its proposed management arrangements with Vodafone Fiji and the subscription for new equity by Fiji National Provident Fund (FNPF).

On behalf of the Independent State of PNG, IPBC is the shareholder and manager of most of PNG's state-owned commercial enterprises and assets, including Bemobile.

The deal is a milestone one for the telecommunications sector in PNG and Solomon Islands and heralds the arrival of the Vodafone brand into those markets.  It is expected to bring much needed competition to the sector and should give Bemobile the capital and strategic partnerships it needs to significantly improve its mobile network infrastructure and services.

Ashurst lead partner on the matter, Richard Flynn, said: "We have worked with IPBC for many years and are delighted to have been able to assist it with this landmark transaction for PNG and Solomon Islands."

This transaction demonstrates the speed with which the new O'Neill government in PNG is seeking to deal with infrastructure and the rehabilitation of State owned enterprises.  It is also understood to be the largest corporate restructure outside of the resources sector in PNG.

The transaction documents were signed at a ceremony at Parliament House in Port Moresby attended by the Prime Minister of PNG, the Hon Peter O'Neill MP, and by the Prime Minister of Fiji, Commodore Voreqe Bainimarama.  A number of other PNG and Fijian dignitaries were also in attendance.

On completion, IPBC and FNPF will subscribe for new equity in Bemobile, with IPBC increasing its existing shareholding to 51% and FNPF to 40%. Capital Way and Asian Development Bank will hold the remaining shares, while Vodafone Fiji will assume management of Bemobile.

The Ashurst team included partners Richard Flynn and Amanda Ludlow, and senior associates Chris Grier and Jane Burton from Ashurst Brisbane office and partner Tim Glenn from Ashurst PNG office.

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