LONDON (Reuters) - Puma Energy will issue new stock worth $1.1 billion to help recapitalise the firm and make its top shareholder Trafigura an even bigger owner, while Angola will decrease its stake, the company said on Tuesday.
The rights issue is due to close mid-April. Angola holds the second largest stake at 31.7% in the firm via its state oil company Sonangol.
Trafigura spokeswoman declined to say how big a stake the company was aiming for.
Global commodities trader Trafigura raised its stake in Puma to 55% last year after it bought out most of Cochan Holdings’ stake in the firm. Cochan is owned by a former Angolan general and now holds 5%.
Angola’s government is on a privatisation drive and aims to streamline Sonangol by selling off some assets and companies, including Puma.
The government said the stake sale process would start in late October. Sonangol has been a shareholder since 2011.
Puma has been loss-making since 2018. After a decade of rapid expansion, the firm has been selling assets including its once highly profitable Australian business.
Puma has retail and oil storage businesses in Latin America, Asia and Africa. The Geneva-based firm said it suspended all operations in Myanmar last month following the military coup.
Reporting by Julia Payne, editing by Louise Heavens
Our Standards: The Thomson Reuters Trust Principles.