Luanda, Angola – (African Boulevard News) – Sonangol, Angola’s state-owned oil company, is facing challenges in its attempt to withdraw from its 20% stake in Société Ivoirienne de Raffinage (SIR) in Ivory Coast. The majority shareholder of SIR, the Ivorian state, has expressed interest in acquiring Sonangol’s shares, but negotiations have proven to be complex.
According to industry reports, Sonangol’s decision to sell its stake in SIR is part of the company’s strategy to focus on its core operations in Angola. The move is seen as an effort to streamline its operations and optimize its resources in the face of challenging market conditions. However, the process of divestment has encountered several hurdles, delaying the company’s exit from the Ivorian market.
Negotiations between Sonangol and the Ivorian state have been ongoing for some time, but issues surrounding the valuation of the stake and the terms of the sale have presented significant obstacles. Both parties are keen on reaching an agreement, but finding common ground has proven to be challenging.
A source familiar with the matter stated, “Sonangol is committed to divesting its stake in SIR in a fair and transparent manner. However, the valuation of the shares and the terms of the sale need to be carefully considered to ensure a mutually beneficial outcome for both parties.”
The Ivorian state, keen on retaining control of SIR, is exploring various options to secure Sonangol’s shares. One possibility is for the government to increase its stake in the company, thus maintaining majority control. However, funding such a transaction might pose a challenge, considering the financial strain caused by the COVID-19 pandemic and other economic factors.
Industry experts believe that the resolution of this issue is crucial for both Sonangol and the Ivorian state. The successful divestment of Sonangol’s stake would allow the Angolan company to focus on its primary operations, while the Ivorian state can maintain control over SIR and strengthen its position in the oil industry.
The complex negotiation process highlights the challenges faced by companies operating in multiple markets and the importance of careful planning and execution when divesting from non-core assets. Both Sonangol and the Ivorian state are likely to continue their discussions in the coming months, aiming to reach an agreement that satisfies the interests of both parties.
In conclusion, Sonangol’s struggle to withdraw from its stake in SIR reflects the complexities of divestment in the oil industry. The negotiations between Sonangol and the Ivorian state are ongoing, as both parties seek a mutually beneficial outcome. The resolution of this issue will have significant implications for Sonangol’s strategic direction and the Ivorian state’s position in the oil sector.
