Subsidiaries of foreign companies in Mozambique should float part of their capital on the local stock exchange

31 May 2012

The Mozambican government wants Brazilian group Vale to float 10 percent of its Mozambican subsidiary Vale Moçambique on the Mozambican stock exchange, the country’s Mining Resources Minister, Esperança Bias said Wednesday.

Based on proposals for a review of current legislation, foreign companies that invest in Mozambique are expected to set aside 5 to 10 percent of their local subsidiaries to be listed on the Mozambique Stock Exchange.

Speaking to financial news agency Reuters, Bias said that the review of the current law was moving ahead and added that, “when it is finished we will announce the percentage that the companies will have to float.”

The minister said she could give no precise date for the process to be finished but gave assurances that it would “be this year.” (macauhub)