Airlines PNG (Port Moresby) is set to undergo a major shift in its shareholding with the company to buy back founder and majority shareholder, John Wild's 54% stake in the carrier.

In a statement to the Port Moresby Stock Exchange, the carrier said it will acquire Wild's 60.87% stake for the token sum of just PGK1 (USD0.40). Following the transaction, which will leave Wild with a 5% stake, the Mineral Resources Development Company (MRDC) and National Superannuation Fund (NASFUND) will then will each subscribe for 100 million new shares in the Company, increasing their shareholdings to 41.1% and 40% respectively.

Existing shareholders will then be offered the chance to acquire additional new shares, on similar terms to those for the share issues to MRDC and NASFUND.

The transaction is expected to raise PGK20million (USD8million) in capital.

"After the SJW Buy-back and the Issues are completed, the Company would be 81% owned by two of PNG’s major institutions. It is expected that additional appointments to the Company’s Board would be made at that time," it said. "The capital raised from the issues will provide the Company with needed working capital as it continues to provide safe, high quality and competitive regular air services to the people of PNG," it said.

Currently, Airlines PNG operates a fleet of fourteen DHC-8-100s and eight DHC-6s on scheduled and charter passenger flights throughout Papua New Guinea.