After negotiations which have lasted since January, Bank of South Pacific (BSP ) and Credit Corporation have entered into a ‘Share Sale and Purchase Agreement’, whereby BSP will acquire of Credit Corporation’s financial services businesses, if Credit Corporation’s shareholders approve.

The agreement values the subsidiaries, Credit Corporation Finance Limited and the company’s operations in Fiji, Vanuatu and Solomon Islands, at K250 million (US$102 million). In its 2012 annual report, Credit Corporation placed a ‘fair value’ of K146 million (US$59 million) on the same assets.

In identically-worded statements, BSP Chairman Kostas Constantinou and Credit Corp Company Secretary Rennie Wekina said:

‘Whilst a number of regulatory approvals have been obtained, the acquisition remains conditional upon receipt of the remaining regulatory approvals and is also conditional upon the shareholders of Credit Corporation, in general meeting, approving the acquisition. It is likely that the extraordinary general meeting of Credit Corporation will be held in early October, 2013.’

The agreement would effectively end Credit Corporation’s activities in the financial services market, leaving it with property companies Credit House Limited, Era Dorina Limited and Ela Makana Development Limited plus a portfolio of listed stocks, including 39,848,331 shares in BSP itself—an 8.9% stake.