FHL buys South Sea Cruises
July 18, 2012 5:05 am
Fijian Holdings is taking over South Sea Cruises.
Their plan is to sell Blue Lagoon Cruises to South Sea for $12 million, and then buy the entire company back for $62 million.
South Sea Cruises operates four vessels out of Port Denarau providing resort transfers to the Mananuca and Yasawa Groups.
FHL Acting Group CEO Nouzab Fareed says the acquisition will place them as market leaders in the cruise sector of tourism.
“For the last 12 years – Blue Lagoon was only able to make a profit for four years – so the rest is just loss making years. We had to restructure. There was no option.”
The initial payment of $10 million has been made.
Another $20 million will be paid within the next 60 days.
The remaining $30 million will be deposited over 7 years.