Sao Tome and Principe: State nets US$32 million from sale of ENCO shares

25 September 2008

Sao Tome, Sao Tome and Principe, 25 Sept – The government of Sao Tome and Principe has netted US$32 million from the sale of 35 percent of the capital it held in oil and fuel company Empresa Nacional de Combustíveis e Óleo (ENCO, Sao Tome’s minister for Planning and Finance, Ângela Viegas said Wednesday.

The minister added that of the US$32 million, US$22 million would be deposited in the Sao Tome and Principe Central Bank, and the remainder would be used to pay off part of ENCO’s debt to Sonangol.

Viegas told the press the deal value amidst criticism from some quarters and the company itself that accuse the government of “doing a bad deal,” because the State had to “give up an important revenue source, in a prosperous and strategic company for the country.”

The minister noted that, despite having sold 35 percent of the previous 51 percent stake, “the Sao Tome state remains an ENCO shareholder.”

Meanwhile, Sonangol raised its stake in ENCO to 78 percent after small shareholder, who together owned 9 percent of shares, sold a 3 percent stake to the Angolan company. (macauhub)