TELIKOM PNG is set to take over Media Niugini (MN) after the company signed a memorandum of understanding with MN’s parent company Fiji Television in October.
Following months of discussions, the signing of the MOU gives Telikom PNG exclusive rights to carry out due diligence and make an assessment of the value of MN.
MN chairman Iowane Naiveli said the company had been exploring the PNG market for expansion or divestment opportunities.
“Based on market conditions and including PNG media legal framework, we have agreed that the best decision would be to divest,” he said.
“We have built this company up in the last eight years and we want to give it back to PNG.”
State-owned Telikom PNG said it would make an offer to acquire Media Niugini before 30 November.
Telikom PNG chief executive Michael Donnelly said the deal would enable the company to extend its offering beyond voice and data services to include content in conjunction with their radio station FM100 for the PNG market.
“We are excited about this business opportunity and see positive synergies between both companies,” Mr Donnelly said.
Telikom PNG also recently acquired Datec PNG, described by Mr Donnelly as “a leader in ICT business”.
The deal will be subject to regulatory approvals in PNG.