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The president of Banco BPI said today that the partial stock market sale of Banco de Fomento de Angola (BFA) will take place in July and estimated that BPI will earn more than 95 million euros from the disposal of 14.75% of the Angolan bank.
“The IPO process [BFA stock market sale] is going very well. We believe the IPO will take place in the summer,” in July, said João Pedro Oliveira e Costa at a press conference presenting the first quarter results (profits of 137 million euros) in Lisbon.
The executive said the preparation for the operation involving BPI and Unitel (the two shareholders of BFA) is going smoothly, with an “unshakable alignment of ideas and principles” between the parties. However, he noted that it’s still too early to speak of potential buyers, as the final sale price has not yet been determined and investor roadshows have not started.
“At this point, we can’t speak of interested parties, nor do we have a final valuation. We are finalizing the last details in that regard, and the roadshow has not yet begun,” he said.
Currently, BFA is 51.9% owned by Angola’s state-run telecom operator Unitel (nationalized in 2022, including Isabel dos Santos’ stake) and 48.1% by BPI.
Since 2017, BPI has been under a European Central Bank (ECB) recommendation requiring it to reduce its exposure to Angola, as the ECB considers Angolan financial supervision not equivalent to that of Europe.
João Pedro Oliveira e Costa said that in July, 29.75% of BFA will be sold on the stock exchange — 15% by Unitel and 14.75% by BPI.
BPI explained today that BFA is currently recorded at a book value of 650 million euros, meaning the 14.75% stake corresponds to 95 million euros.
Oliveira e Costa expressed confidence that, considering the current valuation of the banking sector, BPI will be able to sell its 14.75% stake in BFA for more than its book value.
“We expect the operation to be priced above book value. Our outlook is very positive — this is one of the best banking institutions on the African continent, with consistent financial results and a strong reputation,” said Oliveira e Costa.
If the sale goes ahead, BPI will retain a 33% stake in BFA.
Oliveira e Costa said that this reduction would make the ECB “more comfortable,” but also that BPI could further reduce its stake in the future (via additional sales) if there is investor interest.
Even now, he added, the supervisor “has not shown signs of concern,” which he attributed both to BFA’s solid performance and to the Angolan government’s efforts to align its supervisory practices more closely with European standards.
The BPI president also stated that, even with its stake reduced to 33%, BPI will retain decision-making and veto power within BFA.
He explained that it has been agreed with Unitel and the Angolan state that any changes to bylaws, dividend policies, or governance structures cannot be made without BPI’s consent.
“I can’t be in such a distant market without having a voice,” said Oliveira e Costa, adding that this safeguard of BPI’s rights and its continued role as a major shareholder in BFA will also provide reassurance to new investors.
The sale of part of BFA will take place on the Luanda stock exchange.
“This will be the largest transaction on Angola’s still-young stock market. It will be a challenge, but we believe BFA is one of the best assets available to investors,” he stated.
BPI announced today that it earned 137 million euros in profit in the first three months of this year, a 13% year-on-year increase.
The profit growth is due to the accounting of 2024 dividends from Banco de Fomento Angola (BFA), amounting to 46 million euros, even though net interest income (the main revenue source for a bank — the difference between interest earned on loans and interest paid on deposits) fell 9% to 223 million euros.
In operations limited to Portugal, profit fell 13% year-on-year to 98 million euros.
