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Telikom PNG rejects EMTV Offer

Admin | 10:31:00 PM |
TELIKOM PNG has withdrawn a K27 million offer to buy EMTV because the owner failed to secure National Rugby League rights in the deal, chairman Mahesh Patel says.
Patel told The National yesterday that the deal and valuation agreed to in Fiji last February with Fiji Television Limited, the owners of EMTV, were based on the inclusion of NRL rights.
EMTV is the national television service owned and controlled by Media Niugini Ltd, a subsidiary of Fiji TV.
 “The deal and the valuation were based on EMTV’s owners to secure the NRL rights, which they did not do,” Patel said.
“Now that they do not have this, we had to revise the value of the business. And they were not keen to revalue the business - which does not make sense to us as the NRL is the major revenue source for them and without it, the value of the business is not the same.”
Fijian Holdings group chief executive and Fiji Television Ltd director Nouzab Fareed told the local media in Suva early this month that Fiji TV was still keen on selling Media Niugini Ltd.
“Earlier this year, Fiji Television signed a sale and purchase agreement with Telikom PNG to divest its 100 per cent stake in the PNG-based Media Niugini Ltd for K27 million,” Fareed said.
“As of April, we have satisfied all the conditions except one of the most important ones – which is the NRL (rights).”
Fareed said rugby league was the most popular sport in PNG and contributed to 30 per cent of Media Niugini’s income.
“Because NRL is an important part of Media Niugini, Telikom PNG wanted to re-negotiate things,” he said.
“Fiji Television recently lost the right to air NRL matches in Papua New Guinea, thus it will continue to air on Sky Pacific, Fiji Television’s paid channel. However, Media Niugini will continue to air NRL matches on a delayed basis as agreed.”
He said Fiji TV was looking for another strategic partner or someone who would buy the company totally.
He said six companies had shown interest when the offer was made in October.
Telikom PNG was to have added EMTV to its growing portfolio of media subsidiaries which includes the FM100 radio station. It also acquired Datec PNG last year. The National