Africa-Press – Angola. Yesterday, Banco Caixa Geral Angola published the prospectus for the Initial Public Offering (IPO) of 25 percent of the shares held by Sonangol, the second after BAI successfully concluded a similar operation in May.
“Banco Caixa Geral Angola (BCGA) has just made available the prospectus for the Initial Public Offering (IPO) of the 25 percent of shares held by Sonangol, approved by the Capital Markets Commission (CMC),” he said in a statement.
According to Banco Caixa Geral Angola, the approval of this prospectus certifies its legal compliance and enables the process to enter the final stage.
In question is a document that includes “the bank’s most important information and investment conditions”, such as the type of shares, payment, management team, market, financial information and subscription agreement.
On 29 March, the President of the Republic, João Lourenço, approved the privatization of the shareholding that the State indirectly holds in BCGA, through Sonangol EP, with 24 percent, and Sonangol Holdings Limitada, with 1.0 percent. Percent.
In Presidential Order No. 64/22, already published in Diário da República, it is mentioned that the sale of State assets in BCGA will be through an IPO on the Angolan Debt and Securities Exchange (BODIVA).
The privatization process “must comply with the corporate rights enshrined in the other shareholders, in accordance with the agreements entered into for the exercise of the preemptive right over the 15 percent of the shares representing the bank’s share capital”.
According to the document, a percentage of 2.0 percent of the shares representing the share capital “must be reserved for acquisition under special conditions by workers, under the terms of the law”.
Sonangol and Endiama
The partial privatization of the oil company and the national diamond company, Sonangol EP and Endiama, will take place over the next five years, according to the chairman of the Board of Directors of the Instituto de Gestão de Activos e Participações do Estado (IGAPE).
The two are among the largest of the 195 companies that the Government initially selected for sale between 2019 and this year, but the course of the new coronavirus pandemic delayed the process and the number of assets for the process was revised downwards, to 178.
“We don’t know if Sonangol will be privatized in 2023, 2024 or 2025”, declared Patrício Vilar on Thursday quoted by Bloomberg, in Luanda. “What I can guarantee is that, if the market is ready, Sonangol and Endiama will be privatized” during the government’s next five-year term, he said.
Patrício Vilar reiterated the Government’s commitment to sell 30 percent of Sonangol’s capital, but said that the operation could be carried out in several stages, with the terms still being analysed.
Sonangol and Endiama are contributing to the privatization program by selling some of their stakes. In June, both companies sold a total 10 percent stake in Banco BAI, the country’s biggest creditor, in the first IPO in Angola.
The source cites data that attribute to the Government a cash inflow of US$1.25 billion with the sale of 92 assets, in a process in which 70 percent of the buyers are companies based in Angola, precisely because many of these assets are small. industrial units and farms, more attractive to local investors.
Patrício Vilar added that the reforms carried out by the Government under a program financed by the International Monetary Fund, which ended in 2021, reinforced the value of the Kwanza and also helped to attract foreign investors, with capital that vitalized obsolete industrial companies.
“Today there are wheat processing and biscuit industries that did not exist in Angola 30 years ago”, he said. “We are creating a new world.”
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