Angolan national oil company Sonangol announced on Friday that it will sell its 31.78%-stake in Puma Energy to global commodity trader Trafigura in a $600-million transaction.
In a tripartite agreement, Puma Energy, a subsidiary of Trafigura, will sell a range of strategic Angolan assets to Sonangol, including its retail network comprising 79 filling stations, airport terminals in Luanda, Catumbela, Cunene and Lubango, and the Porto Pesqueiro Storage Terminal in Luanda Bay. In turn, Trafigua will purchase Sonangol’s shares in the company.
For the downstream fuel supplier, the objective is to strengthen its balance sheet. Puma Energy is currently in the process of carrying out a rights issue that began in March, in a bid to repay a 2018 term loan.
“The recapitalization and strengthening of Puma Energy’s balance sheet has been a key strategic aim, which will stabilize the company’s finances and underpin investment in our ambitious growth plans,” says René Médori, Chairman of Puma Energy. “Puma Energy’s values of customer focus, leading by example, collaboration and agility remain as relevant to success as ever.”
For Sonangol, the sale is aligned with its ongoing privatization program, which seeks to optimize the company’s portfolio by divesting non-core assets. Notably, it will also enable Sonangol to abstain from participating in the rights offer.
“The sale of Sonangol’s entire shareholding in Puma Energy and the acquisition of Puma Energy’s assets in Angola represents the achievement of a strategic objective for the company,” said Sebastião Gaspar Martins, Chairman of the Board of Directors of Sonangol.
The transaction is expected to take six to eight months before closing, in which Trafigura will assume more than 90% ownership in Puma Energy, up from its previous 55.55% stake.