Credit Corp responds to non-binding shareholder proposal

The board of Credit Corporation has completed its review of the likely impacts of a potential in specie distribution of the shares held by the Company in Bank South Pacific Limited.

The non-binding resolutions proposed by Teachers Savings and Loan Society Limited sought, among other things, the appointment of an independent expert to determine whether the Company would satisfy the solvency test if the proposal was implemented.

Credit Corp Comments

Credit Corporation chairman Syd Yates said: “The review process has been comprehensive and the Board is committed to ensuring that the Company is best-positioned for sustainable long-term growth.

“Credit Corporation, as a homegrown PNG financial services company, has played a signficant role in PNG’s and the South Pacific’s business and economic life for more than 40 years, building a trusted brand throughout the region.

“At Credit Corporation, the ambition of the Board and Management is to become PNG’s and the South Pacific’s leading financial services organisation, assisting in developing the aspirations of all Pacific

Island nations.

“To achieve this ambition, and in support of PNG and the South Pacific’s broader economic and development objectives, the Directors believe that it is appropriate at this time for Credit Corporation to maintain the strongest possible financial position. “Retaining the BSP assets at this time is core to achieving these objectives to maintain Credit Corporation’s scale and competitiveness.”