(Bloomberg) -- Angola will sell shares in its biggest insurer as the southern African nation accelerates its asset-sale plans to bolster its finances.
The privatization of state-owned insurer ENSA - Seguros de Angola SA is at an “advanced stage,” with the prospectus already submitted for approval to the Capital Markets Commission, State Secretary for Treasury Ottoniel dos Santos told reporters in Luanda, the capital, on Friday.
The public offering for a 30% stake will open on Sept. 15 with trading expected to start in October, he said.
The government is also planning to sell stakes in Unitel SA, the nation’s biggest telecommunications company, Banco de Fomento Angola, the second-largest lender, Standard Bank de Angola SA, and Bolsa de Divida e Valores de Angola or Bodiva.
The state might retain stakes in some assets for strategic reasons beyond just dividend income, “so privatization does not always mean selling the state’s entire share,” Dos Santos said.
The companies are among the largest of almost 200 state-owned firms and assets the government initially earmarked for disposal in 2019. Some of the sales were delayed because of the coronavirus pandemic.
It’s already sold six of 14 assets planned for the year through IPOs and raised 1.05 trillion kwanzas ($1.1 billion) through disposals by July 1, according to Dos Santos.
President Joao Lourenco has vowed to forge ahead with efforts to diversify Angola’ economy, attract foreign investment and jobs. Africa’s third-biggest oil producer relies on crude for most of its export revenue and is facing a cash crunch because of its high debt burden.
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