28/06/2024 - Unit Trust of Fiji (UTOF) has acquired an additional 3,464,355 share parcel of Amalgamated Telecom Holdings Limited (ATH) through a market transaction on the South Pacific Stock Exchange (SPX). This acquisition marks a notable trading in the Fijian telecom market.
According to UTOF’s Chairperson, Ms. Lavinia Kaumaitotoya, UTOF’s acquisition of additional ATH shares underscores UTOF's confidence in the telecom sector’s growth potential. As the South Pacific region’s communication landscape evolves, ATH remains a key player, and UTOF’s investment reflects its commitment to participating in this dynamic market.
The transaction involved the exchange of 3,464,355 ATH shares at a price of FJD 2.20 per share, totaling FJD 7.685 million. Notably, this is the largest single-day trade volume for ATH since its listing on the SPX in 2002. With this acquisition, UTOF’s shareholding stake in ATH has increased to 4.78%, with a total of 22,855,979 shares owned.
The shares were acquired from our Samoan counterpart, Unit Trust of Samoa (UTOS) via an ATH share to UTOF Units swap arrangement, ensuring no foreign cash outflow was required to settle the transaction. This strategic reduction of ATH ownership illustrates UTOS’s efforts in portfolio diversification. Despite the transaction, UTOS remains a significant shareholder of ATH, reflecting its commitment to the regional telco giant. UTOS is a private trust owned by unit holders with assets entrusted to a trustee company, aiming for inclusivity and sustainable returns through diversified investments. UTOS and UTOF maintain a strong strategic relationship and continue to explore regional opportunities for the benefit of their respective unit holders.
ATH’s Pacific expansion strategy includes telecommunications and ICT businesses in multiple countries, with recent significant investments such as the launch of a 4G+ mobile broadband network in Papua New Guinea (PNG). This project, in collaboration with Vodafone Fiji, represents the largest Fijian investment in PNG’s telecommunications sector, aiming to cover over 90% of PNG’s population within 12-18 months with competitive services.
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