Sonangol sells telecommunications and air transport subsidiaries

7 March 2006

Lisbon, Portugal, 07 March – Angola’s Sonangol is to sell its telecommunications (Mercury) and air transport (Sonair) subsidiaries, amongst others, as part of internal restructuring of the state oil company, the latest edition of the Africa Monitor newsletter reported.

The newsletter said that the sale of non-core business areas, which also includes selling off its internal distribution subsidiary, will focus on sales to Angolan investors and businessmen, according to government sources.

Setting up communications within the country, through the infrastructure reconstruction process, makes it possible to set aside the non-core business areas without affecting the company’s operations, and is inline with International Monetary Fund (IMF) recommendations.

The IMF has recommended that the country’s management of its oil resources should be transferred to a State agency or public institution, as a way of increasing the transparency of how oil revenues are used, Africa Monitor reported.

Sonangol has stakes in international oil companies such as Cape Verde’s Enacol, Sao Tome and Principe’s Enco and, more recently, Portugal’s Galp Energia.

According to África Monitor, after restructuring goes ahead Sonangol will have to go through an open international audit.

Finally, the company plans to be listed on the international stock markets, first of all in Johannesburg and then in new York.(macauhub)