Angop - Agência de Notícias Angola Press

Sonangol injects capital into Banco Económico to respond regulator

Tue, 13 Aug 2019 18:47 - Economy

Luanda - The minister of Mineral Resources and Petroleum, Diamantino Azevedo said that the increase in Sonangol's stake in Banco Económico stemmed from shareholder agreements because the Central Bank, as a regulator, has demanded a capital increase and one of its shareholders has not applied it.

  • Minister of Mineral Resources and Oil, Diamantino Azevedo, at presentation of Propriv

Diamantino Azevedo, who was reporting to journalists on the sidelines of the public presentation act of the 2019-2022 Angola Privatization Program, stressed that the increase will not be made all at once.

He also said that after the bank's proper reorganization, the state will divest its stake so that Sonangol can focus on the score business, which is the oil prospecting  and exploration segment.

Sonangol took Lektron's stake in Banco Económico, now holding 70.37% in the bank, compared to 39% in the past.

In addition to the oil company, the shareholders are Portuguese Novo Banco (9%) and Geni (19.9%).

Meanwhile, Diamantino Azevedo said that the Government has decided to lead to the partial privatization decision of Sonangol through a public offering of shares, which in the first phase will be minority, the exact percentage of which will be decided throughout the process, after consideration of the privatization by the head of Angolan Government.

He pointed out that such privatization effectively predicts that part of the shares will be allocated to the company's employees and other subscribers.

The minister stressed that in this way they will be following the ideal model already in practice in other internationally renowned companies.