[2019-10-25] Equity securities will finance some companies due to be privatised in Angola
The Angolan government will help state-owned companies raise additional funding before they are restructured for privatisation, said Secretary of State for Finance and the Treasury Osvaldo Vitorino João in Luanda on Thursday.
The Secretary of State, who was speaking during the debate about the proposal for a Legislative Authorisation Law to approve the Legal Framework of Equity Securities, said the Government’s aim is to maximise the value raised by the State when the companies are sold to private parties.
João recalled that the Privatisation Programme approved by the Government of João Lourenço includes 195 companies, wholly or partly owned by the Angolan state, some of which are ready to be sold, while others need to be restructured and financed in advance.
It was precisely as part of the Privatisation Programme that this proposal for the Legislative Authorisation Law of the Legal Regime for Equity Securities came about, involving debt financing instruments that are more stable than bank loans or bond issues.
“These are instruments that will enable these companies to be restructured and raise stable financing, with the possibility that acquirers may, in the long run, convert these securities into a real equity stake in these companies,” he explained, quoted by the Angop news agency.