Acting ABG Secretary for Economic Development, Albert Kinani said the entity being the business arm of the ABG is responsible for all investments made by the government and that includes the ABG’s shares in the Chebu Shipping Company and the recently acquired shares in the Bougainville Import Export General (BIEG) Corporation Limited.
Kinani explained that in the case of BIEG, the company is currently trading as a private company which under the Company’s Act of 1997 allows for people or entities to purchase shares in the company.
“Unlike a public company where the shares a floated on the stock exchange BIEG is trading as a private company and this still allows for the purchase of shares without documentation such as a prospectus,” said Kinani.
He further explained that any Bougainvillean can purchase the shares; upon payment of the shares they will sign a Share Purchase Agreement and receive a Share Certificate validating the purchase of the shares.
He said in a public company where the dividends paid to the shareholders is based on the annual profit margins of the company, the arrangement with BIEG is based solely on percentages and does not run the risk of devaluating due to market factors.
“The annual percentage that is paid out as dividends is guaranteed to be paid to shareholders not taking into account the performance of the company and this is also a guarantee that shareholders will still make money from the company,” said Kinani.
He explained the current dividends stands at ten percent of the share purchase and will increase to 13 percent the following year after which a review will be carried out to see more ways to maximize profits for the shareholders.
Kinani further explained BIEG is currently starting off its operations so it is still operating as a private company.
“But until such time as the company reaches maximum growth and has the capacity of meeting the requirements of going public such as the securities commission, then will BIEG go public," Kinani said.