Companies controlled by Portugal’s richest man and Angola’s wealthiest woman have lost more than €100 million on the sale of Galp shares.
The holding company, Amorim Energia, owned 55% by Américo Amorim and 45% by Angolan oil company Sonangol and Isabel dos Santos, yesterday sold 5% of Galp Energia for €484.69 million.
Their 2012 purchase of shares in Galp from Italian State oil company ENI had cost them €590 million so Thursday’s sale shows a loss of €105.31 million.
This operation was executed by Société Generale on Thursday afternoon, September 15, and was completed at 22:00 with institutional investors taking up the 5% Galp holding.
At 12:45 today, September 16, Galp shares fell 4.67%.
The markets were taken aback by the sale of shares by Amorim Energia as it is out of character for the wily investor to sell anything at a loss.
Market insiders claim that the sale was justified by troubles within the Sonangol subsidioary Esperaza.
On June 3rd, Isabel dos Santos was handed the leadership of Sonangol by her father, Angola’s president, with a mandate to restructure the company. One of her first decisions was to halt further Sonangol asset sales to Chinese investors but this left the company short of cash.
Sonangol has strayed from its main business of oil production and distribution and was dabbling in real estate, construction, fiber optics, telecommunications, hospitality, tourism, hospitals and banking.
Sonangol started to bleed money, under financial pressure from the low international oil price.
Cork magnate Américo Amorim, known in the business world for not selling anything at a loss, had been under pressure to reduce Amorim Energia’s 5% holding in Galp but, despite the financial loss, he retains a useful 33.34% of the Portuguese company.
Américo Amorim’s office said he "would not be making comments regarding this operation."
Amorim, Portugal's richest man, has assets of around €3.5 billion so a loss of this magintude will not affect his lifestyle.
