<\/p>\n
You can also listen to this podcast on iono.fm here.<\/p>\n
JIMMY MOYAHA: There are developments on the African continent that relate to the banking world.<\/p>\n
The Angolan government has confirmed that the 49% stake in Standard Bank Angola that was seized from Carlos S\u00e3o Vicente back in 2020 is something they would potentially be interested in taking up themselves.<\/p>\n
We\u2019re going to look at this and the potential implications for the Standard Bank Group in greater detail with our resident banking specialist, Denker Capital director Kokkie Kooyman, who joins me on the line now to see what we make of this.<\/p>\n
Well, Kokkie, lovely having you on the show, as always. Thanks so much for taking the time. Quite an interesting development in this particular case. It is quite old; it dates back to the pandemic when this stake was initially seized. Standard Bank has always remained the majority shareholder, holding 51% of this particular asset in Angola.<\/p>\n
But it\u2019s quite an interesting development here \u2013 that the Angolan government is potentially looking to raise some money of their own from this.<\/p>\n
KOKKIE KOOYMAN: Yes, I forget how the stake originally came about, but I\u2019m sure Standard Bank, when it formed Standard Bank Angola, probably [from] the insurance company where this [fraudster] was the owner of the shares, and probably where the fraudulent actions took place \u2013 he probably had a bank and Standard Bank probably bought his stake and he kept 49%.<\/p>\n
But I\u2019m just guessing.<\/p>\n
But the good news is I think this is one of those where it\u2019s a win-win for everybody in that the Angolan government and the new president there, who has a reform agenda and sees the stake \u2013 which was obviously forfeited in terms of debts, probably tax debts owed to the state \u2013 and then realised that they want to actually start an Angolan stock exchange, which was also done I forget how long ago, fairly recently, and at the same time list a few other state-owned and other enterprises on that stock exchange.<\/p>\n
Already another positive, because once, let\u2019s say, any state-owned enterprise is listed, it\u2019s outside \u2013 albeit with minority shareholders \u2013 but it must give account of what it does.<\/p>\n
Even when it has debt, it has to account for that, it has to report to those shareholders.<\/p>\n
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And this stake, it seems the Angolan government, probably due to a prior arrangement, is offering some to Standard Bank. So Standard Bank wins; it gets a bigger holding in its bank there.<\/p>\n
The Angolan government wins because the stake that it owns suddenly becomes worth more. That\u2019s good for the taxpayer because it means inflow into the coffers of government if it\u2019s obviously used correctly.<\/p>\n
And thirdly, it increases the free float on the Angolan Stock Exchange, and makes it available for pension funds and other investors there.<\/p>\n
For Standard Bank I think this is good. Angola is actually in a turnaround situation as well \u2013 and especially with the higher oil price; they\u2019re benefitting from that.<\/p>\n
If the government\u2019s reform agenda continues, Angola will be quite a good investment for Standard Bank. It\u2019s one of I think 20 countries, so it is a nice, diversified portfolio.<\/p>\n
But this one I think is working out quite well for Standard Bank, and I know they\u2019ve been putting in more resources there.<\/p>\n
JIMMY MOYAHA: As we know, as it currently stands, the Standard Bank Group holds 51% of this particular banking operation in Angola, in the form of Standard Bank Angola, and it is allowed to take up an additional 24% \u2013 which I suspect is the percentage you\u2019re alluding to there, Oom Kokkie, with of course the other 10% looking to go onto the exchange.<\/p>\n
That means that the Angolan government would be left with probably around the 15% mark in that respect.<\/p>\n
With regard to that particular transaction, we\u2019ve reached out to the Standard Bank Group. They have declined to comment at this stage. Obviously we can understand the sensitivities around this type of transaction.<\/p>\n
But if we look at the increase and we look at perhaps a couple of permutations here, if we are going down the rabbit hole of saying they will take up that additional stake \u2013 as you mentioned they might be interested in doing so \u2013 from an operational standpoint is the Standard Bank Group well-resourced to be able to do this?<\/p>\n
I suppose if you are operating on the continent and something like this does happen, it is their reputation on the line at the end of the day.<\/p>\n
KOKKIE KOOYMAN: Yes, absolutely.<\/p>\n
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It increases their stake from 51% to 75%. So in terms of operations, control is the same.<\/p>\n
But they\u2019re also giving a vote of confidence in that government, and probably getting closer to them in that regard in that they\u2019re taking up that stake.<\/p>\n
And especially having had the 51%, they know the operation, they know what they\u2019re buying, so it will depend on the final price, which I think has been settled.<\/p>\n
Indications are they\u2019re taking it up.<\/p>\n
I haven\u2019t actually looked at the valuation myself, but I\u2019m sure Standard Bank will only take it up if that valuation is attractive.<\/p>\n
So I think the important thing in any investment in emerging markets \u2013 or these days even in non-emerging markets \u2013 is the government. So, have you got a capital-friendly government and a reform-minded government? And is it a stable environment? You don\u2019t want to be in a country where suddenly you get a new president who changes everything.<\/p>\n
But Angola seems to be going in the right direction after years and years of corruption under one individual \u2013 [and] recently his daughter.<\/p>\n
So it\u2019s actually very good also for Africa. If this works and the country does well and grows, it sends a signal to other governments as well.<\/p>\n
If you make your environment attractive and you invite capital in and you help the country grow and you create jobs, you then get re-elected.<\/p>\n
So I think it\u2019s good for Standard Bank as well. With the higher oil price, especially, Uganda\u2019s economy will also be growing stronger, and I think they\u2019ll also be able to report on an increased stake in that Angolan operation.<\/p>\n
JIMMY MOYAHA: I suppose it always does help to have that measure of confidence. We\u2019ve seen the Standard Bank Group has been able to reassure its own investors \u2013 with the Industrial and Commercial Bank of China holding around 20% of that bank \u2013 that this is a stable environment to operate in.<\/p>\n
We\u2019ll have to see if that continues to be the case.<\/p>\n
For now, we\u2019ll leave the conversation on that note. Director at Denker Capital Kokkie Kooyman joined us to look at the latest developments out of Standard Bank Angola \u2013 how those developments have the potential to impact the Standard Bank Group, and what could likely play out there going forward.<\/p>\n
#Standard #Bank #Angola #stake #sale #Whos #buying<\/p>\n","protected":false},"excerpt":{"rendered":"
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