MEDIA RELEASE: ICCC GIVES CLEARANCE TO DIGITEC ICT LTD FOR ITS PROPOSED AMALGAMATION WITH ICT HOLDINGS LTD

ICCC GIVES CLEARANCE TO DIGITEC ICT LIMITED TO PROCEED WITH ITS AMALGAMATION WITH ICT HOLDING LIMITED

The Independent Consumer and Competition Commission (“ICCC”) announces that it has given clearance to Digitec ICT Limited (“Digitec”) for its proposal to amalgamate with ICT Holding Limited (“ICTHL”) (the “Proposed Amalgamation”) in terms of its impact on competition in any market in PNG.

The ICCC Commissioner and Chief Executive Officer, Mr. Roy Daggy stated that, “The Proposed Amalgamation involves the transfer of ICTHL’s liabilities and shareholding interest into Digitec and Digitec would continue as the surviving company (amalgamated company). Both Digitec and ICTHL are subsidiaries of the Vodafone Fiji Pte Ltd (“VFL”) group of companies, hence the amalgamation is an internal restructure.”

Mr. Daggy further explained, “After the Amalgamation, ICTHL’s 49 percent shareholding in Digitec would be cancelled and VFL would be the sole shareholder, owning 100 percent (100%) of the shares in the amalgamated company (Digitec).”  

 “The ICCC noted that the Proposed Amalgamation would be an internal restructure with no structural changes in the ICT market in PNG. Digitec would remain 100 percent owned by VFL before and after the amalgamation; hence the current ultimate ownership structure, the level of competition, and the current position of Digitec in the market would remain the same after the amalgamation. “Mr. Daggy said.

Mr. Daggy added, “The ICCC received numerous submissions from stakeholders who supported the proposed amalgamation on the basis that it would not substantially lessen competition. However, a major telecommunication industry player, raised some non-competition concerns, such as compliance issues and the validity of certain information submitted by Digitec. The Applicant responded to and verified the issues raised accordingly to the ICCC’s satisfaction.

Also, the ICT regulator, NICTA, while supporting the proposed amalgamation in terms of competition impacts, have raised comments and recommendations, related to sectoral risks and recommended conditions. Since the proposed amalgamation was an internal restructure and would have minimal or no competition impact on the overall market structure, the ICCC suggested that NICTA, as the ICT sector regulator, monitor and address such risks and, where necessary, impose relevant conditions on Digitec’s license.”

The ICCC, therefore, determined that the Proposed Amalgamation would not have or would not be likely to have the effect of substantially lessening competition in any market(s) in PNG. Hence, the Proposed Amalgamation was cleared to proceed.