Unitel offers 140 million euros for 10 pct of Banco de Fomento Angola

4 January 2016

Angolan company Unitel has offered 140 million euros for 10 pecent of Banco de Fomento Angola (BFA), of which it has already owned 49.9 percent since 2008, according to a communication to the market published Sunday in Lisbon.

The information provided by the Portuguese Securities Market Commission (CMVM) said that on 31 December the Angolan telecommunications operator presented “a firm offer” to purchase of shares representing 10 percent of the capital and respective voting rights in BFA from Banco BPI, which currently owns 50.1 percent of BFA.

“The shares will be acquired for a total amount of 140 million euros with an immediate payment of 50 million euros and three instalments of 30 million euros each,” reads a document accompanying the letter sent by the management of Unitel to the chairman and deputy chairman of the Portuguese bank, Fernando Ulrich and António Domingues, respectively.

Unitel noted that “this proposal is firm and will be valid until the end of January 2016,” adding that it is “available to immediately initiate a negotiation process for the conclusion of contracts in the shortest possible time.”

In the letter which contains the timetable for the acquisition of a stake in the capital of BFA, Unitel, a company in which Angolan businesswoman Isabel dos Santos controls 25 percent, the same stake as Angolan state company Sonangol, criticises BPI’s choice to move ahead with a demerger of Banco de Fomento Angola (BFA).

With the demerger project, the goal of BPI’s management team is to deliver the majority of BFA’s capital to its shareholders, as well as other interests it holds in the financial sector in Africa, in order to comply with the requirements of the European Central Bank ( ECB) to reduce risk exposure to Angola.

BPI’s banking operation in Angola is the “crown jewel” of the Portuguese banking group, representing 70 percent of the group’s profit between January and September 2015, or 105 million euros of a total of 151 million euros. (macauhub/AO/PT)