Puma Energy Holdings Pte. Ltd, Trafigura PTE Ltd and Sonangol EP have announced the milestone signing of a series of agreed transactions.
First, Trafigura has agreed to purchase from Sonangol its entire shareholding in Puma Energy for the sum of US$600m.
Second, Puma Energy has agreed the sale of its Angolan business and assets to Sonangol for the sum of US$600m. This includes the acquisition of the Pumangol retail network of service stations, airport terminals and marine terminals, including the state of the art Terminal de Combustíveis da Pumangol em Luanda (TCPL) terminal in Luanda Bay.
Completion of these transactions are subject to regulatory approvals.
These transactions enable Puma Energy to reduce the size of the rights issue to raise US$500m from rights already subscribed for by Trafigura and a small number of minority shareholders. The rights issue is being implemented by way of a convertible instrument under which payment is made by subscribers on 21st April 2021 to Puma Energy and the shares will be allocated to subscribers following receipt of regulatory approvals.
The rights issue was approved at an Extraordinary General Meeting of the Company held on 18th February and was launched on 8th March 2021. Puma Energy will use the proceeds of the rights issue and sale of its Angolan business to repay its outstanding 2018 Term Loan Facility and to provide a sound financial basis to continue to accelerate its growth plans. Trafigura’s shareholding in Puma Energy is expected to increase to in excess of 90% as a natural consequence of the recapitalization.
René Médori, Chairman of Puma Energy said: “The recapitalization and strengthening of Puma Energy’s balance sheet has been a key strategic aim, which will stabilize the Company’s finances and underpin investment in our ambitious growth plans. Puma Energy’s values of customer focus, leading by example, collaboration and agility remain as relevant to success as ever. Today’s announcement means we can build on the foundations developed over the past few years and accelerate capital investment to capture the growth opportunities we have identified.
“Puma Energy has operated in Angola for many years. I would like to thank our employees and partners there for all of the hard work and commitment they have shown building a successful business serving communities across the country. ”
Gaspar Martins, Chairman and CEO of Sonangol said: “The sale of Sonangol’s entire shareholding (31.78%) in Puma Energy and the acquisition of Puma Energy’s assets in Angola represents the achievement of a strategic objective for the company. Today’s news is important because the sale of Sonangol’s holding in Puma Energy has been achieved through a structure that avoids Sonangol’s participation in the recapitalization efforts in Puma, and represents a solid step towards delivering the company’s Privatization Programme, while acquiring a business with valuable assets to its core business.”
Jeremy Weir, Trafigura’s Executive Chairman and CEO, commented: “Trafigura is pleased to support the recapitalization of Puma Energy and the sale of Puma’s Angolan assets to our longstanding partner Sonangol. This is a further demonstration of our commitment to and confidence in Puma Energy and its future prospects.”
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