The commodity trading company has also agreed to sell its Angolan business and assets to Sonangol
Trafigura has agreed to acquire Sonangol’s entire stake of 31.78% in Puma Energy, a Singaporean mid- and downstream oil company, for $600m.
The Singaporean commodity trading company has also signed an agreement to sell its Angolan business and assets to Sonangol for the same amount.
The Angolan assets of Trafigura include the Pumangol retail network of service stations, airport terminals, and marine terminals, which include Terminal de Combustíveis da Pumangol em Luanda (TCPL) terminal in Luanda Bay.
According to the parties, the deals will help Puma Energy cut down the size of the rights issue to raise $500m from rights subscribed already for by Trafigura and also a small number of minority shareholders.
Trafigura executive chairman and CEO Jeremy Weir said: “Trafigura is pleased to support the recapitalisation 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.”
As a natural result of the recapitalisation, Trafigura’s stake in Puma Energy is likely to increase to more than 90%.
Puma Energy chairman René Médori said: “The recapitalisation 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 is engaged in providing energy solutions in 44 countries spanning six continents. The company has nearly 2,900 retail sites along with a footprint at more than 80 airports, and a network of storage terminals.
For Sonangol, the sale of its stake in Puma Energy avoids its participation in the latter’s recapitalisation efforts, said the company’s chairman and CEO Gaspar Martins.
The acquisition of Trafigura’s Angolan assets, on the other hand, will help strengthen its core business.
Closing of the two deals are subject to receipt of regulatory approvals.