OIL Search Limited shares have reached an unprecedented record high, trading at
$9.30 as of Saturday morning, bringing in a windfall gain of more than K900 million in just three months. Prime Minister Hon. Peter O’Neill said the share price may even go higher in the next few months, bringing enormous benefits in terms of credit ratings, financial standing and credibility internationally. "We have been holding these shares for a very long time, it has been a speculative investment before, what was different then and what is the difference now, the only good thing about this is that the value has gone up, it is a much better value, in less than three months, our windfall is around K800 going K900 million." The government early this year borrowed K3 billion from the United Bank of Switzerland (UBS)to purchase a 10.01 per cent in Oil Search that has come under the radar by critics. "It is generally clear to everyone that these are very valuable shares and the government was right in making sure of that,” Prime Minister Hon. Peter O’Neill said. "We have been a long term shareholder of OSL and we have waited long enough, and it would have been very unfortunate if we have to allow the upside being received by someone else, when we have held it when it was on the lower side and when we have held it for so long. "So it will be really unfair if we did not participate in the upside. And the upside of that is that because of the investments that Oil Search have made, the value is starting to go up and the market is reacting to that. "I think the shares are likely to reach $12 within the next year or so and that is a very good indication for our country. We bought it at $8.20 at a very substantially discounted price and all the gain of that pricing goes to the nation." Prime Minister Hon. Peter O’Neill said the benefits are not only monetary in terms of money coming into the country, but the investment increases the value of net assets and investments by the country. He said the immediate value from such investment is financial credibility, standing and lifts the value of assets and the economy. "This kind of value will also give confidence to investors who want to come into the country, they know that they can come to PNG and make a decent return on their investments, so they are attracted to come here. It just adds credibility," the Prime Minister said. PNG Facts/Post Courier Comments are closed.
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