Mozambican state stake-holding company Instituto de Gestão das Participações do Estado (Igepe) may increase its stakes in some companies in which it is a shareholder, but which have high levels of debt, said the chairman of Igepe, Apolinário Pelembe.
Speaking to daily newspaper Notícias, Panguene said the measure was intended to reduce the negative impact on results of servicing debt taken on from retail banks by partially state-owned companies.
Some companies in which the state has a stake, such as Petróleos de Moçambique (Petromoc), Companhia Moçambicana de Hidrocarbonetos (CMH), Mozal and Companhia Moçambicana do Gasoduto (CMG), have taken on long terms loans from banks, which is affecting potential dividend distribution to shareholders.
Panguene also said the companies included mobile phone operator Moçambique Celular (mCel) and airline Linhas Áreas de Moçambique (LAM), companies which, despite having positive operating results, end up reporting losses due to debt servicing.
“What we are doing is considering financing alternatives for companies in which the state has a stake, not allowing that financing to be carried out only through banks, and rather to be via a greater stake in the company for the state or by the state providing loan capital,” said the Igepe chairman. (macauhub)