Angolan businessman Carlos Vicente’s Standard Bank stake put on the block for $261 million

Angola’s Capital Markets Commission (CMC) has approved the sale of a 34% stake in Standard Bank Group’s subsidiary in Angola once owned by businessman Carlos São Vicente, paving the way for a transaction valued at between $215 million and $261 million as the country continues disposing of assets seized through its anti-corruption campaign.

São Vicente, a Portuguese Angolan business executive of AAA Seguros, was sentenced in 2022 to nine years in prison on charges including embezzlement, tax fraud and money laundering, after authorities seized assets linked to his business interests.

Standard Bank Group gets first right to acquire stake

The Capital Markets Commission (CMC) approved the sale of 4.76 million shares, representing 34% of the bank’s share capital. The public offering is scheduled to run from September 11 to September 25, ahead of the bank’s expected listing on the Angola Debt and Securities Exchange (BODIVA) on September 30. The shares are priced between 41,220 and 50,000 kwanzas each, valuing the 34% stake at approximately $215 million to $261 million.

Standard Bank Group, which currently owns 51% of Standard Bank Angola, has been allocated 24% of the stake being sold, giving it the opportunity to increase its ownership to 75%. The remaining 10% will be offered to public investors as part of the listing.If Standard Bank Group acquires its full allocation, the resulting ownership structure would leave the South African banking group with 75%, the Angolan state with 15% and public shareholders with 10%.

The allocation gives Standard Bank Group a concrete opportunity to expand its presence in Angola after expressing interest in increasing its stake in the country.

Sale marks next phase of Angola’s asset recovery drive

The shares form part of the 49% stake in Standard Bank Angola previously controlled by São Vicente, a former executive of insurance company AAA Seguros.

Angolan authorities seized the stake during the country’s broader campaign to recover assets linked to corruption, fraud and embezzlement. São Vicente was sentenced in 2022 to nine years in prison for embezzlement, tax fraud and money laundering. The state plans to sell 34% of the seized holding while retaining the remaining 15%.

The transaction illustrates a shift in Angola’s asset-recovery programme from recovering assets to determining how recovered holdings can be managed, monetized or returned to the market. Authorities said in 2023 that more than $5 billion had been recovered through the campaign, in addition to more than $10 billion previously announced, while other assets remained subject to court proceedings.

Standard Bank Angola prepares for market debut

Carlos Manuel de São Vicente, a Portuguese Angolan business executive whose career focused on the oil insurance and real estate markets, was convicted in 2022 of multiple white-collar crimes by an Angolan court amidst ongoing anti-corruption efforts by the State. The planned offering will bring Standard Bank Angola to BODIVA while reducing the state’s direct ownership of the lender.

For Standard Bank Group, the transaction could strengthen its position in one of Africa’s largest oil-producing economies and raise its ownership from 51% to as much as 75%.

For Angola’s capital market, meanwhile, the public allocation will introduce additional investors to the bank as the country continues efforts to deepen its securities market.

The $215 million to $261 million valuation represents the potential value of the 34% stake being sold and should not be interpreted as the amount recovered directly from the São Vicente case.

The transaction ultimately offers a market-based route for Angola to monetize part of a seized corporate asset while retaining a minority interest in Standard Bank Angola.