Angola’s Sonangol has bookkeeping loss of 655 million euros for Portuguese bank Millenium bcp

5 July 2011

Luanda, Angola, 5 July – Angolan state oil company Sonangol has a bookkeeping loss of 655 million euros in its shareholding in Portuguese bank Millennium bcp, according to calculations by Angolan newspaper Novo Jornal.

The oil company took a 2 percent stake in the Portuguese bank in June, 2007 when the bank’s shares were priced at over 3 euros, and the current price of each share is around 3.5 euro cents.

Since then, the newspaper said, Sonangol has boosted its position in what is Portugal’s largest private bank and currently owns 12.44 percent of it.

Novo Jornal said that the Angolan oil company had invested over 1 billion euros in acquiring that stake and that at market prices it is now worth only 345 million euros, which leads to the bookkeeping loss of 655 million euros.

The Sonangol group recently saw its stake in BCP reduced from 14.59 percent at the end of 2010, to 12.44 percent after the bank’s capital increase. Millennium bcp is the main shareholder of Angola’s Millennium Angola bank and in which Sonangol and Banco Privado Atlântico also have a stake.

This dilution of Sonangol’s position is due to a capital increase of almost 1 billion euros by BCP, which was carried out by exchanging debt for share and was thus not available to the bank’s current shareholders. (macauhub)