Fijian Holdings Limited has reached an agreement to extend the timeframe for the acquisition of BP South West Pacific.

In a statement, FHL chairman Isoa Kaloumaira confirmed that FHL and BP have mutually agreed to extend the transaction date to mid to late June 2009.

Kaloumaira said FHL has exercised its endeavors in dealing with international banks, but few more issues are outstanding prior to the final sign off and the managing director Sereana Qoro is currently in India for the final discussions.

He added that the devaluation of the Fiji dollar has had the impact of increasing the value of assets and liabilities outside Fiji in Fiji dollar terms and the parties have agreed to alter the basis on which goodwill was stipulated resulting in a reduction in the goodwill figure when calculated in US dollars.

The chairman also said that by divesting FHL's stakes in Fosters Group Pacific Limited in May, FHL received approximately $40 million which has been used to reduce its existing liabilities with the local banks.

FHL also paid an additional $5 million to BP as a further deposit.

It was earlier announced that FHL had agreed to purchase all BP South West Pacific service stations and other operations at a cost of $190 million.