Trafigura to take control of Puma after Sonangol double deal

London, (Quantum Commodity Intelligence) - Commodity trading house Trafigura will take control of more than 90% of shares in troubled mid- and downstream energy business Puma Energy after agreeing a deal with Angolan state oil company Sonangol to buy its 31.78% stake in a deal valued at $600 million.

Sonangol will also take ownership of Puma's Angolan business and assets in a second deal, also worth $600m, according to a joint statement issued Friday by Trafigura and Puma.

The second deal includes a retail network of service stations, airport terminals and marine terminals.

Puma booked total losses of over $400,000 last year and $1.1m in 2019 on operations that span Latin America, Africa and Asia.

Trafigura's stake will rise from the current 55% after also including its subscription to a $1.1 billion rights issue launched last month.

Puma will use the proceeds from the sale of its Angolan business to reduce the size of its rights issue and then combine the cash from both to repay a 2018 Term Loan Facility and shore up the company's balance sheet, said the joint statement.

"These transactions represent the culmination of the efforts of the national oil company, aiming to protect itself from participating in the recapitalization of Puma Energy," said Sonangol in a separate statement.

In a separate announcement, Puma also said that the company's CEO Emma Fitzgerald will step down from her role with immediate effect, with CFO Andrew Kemp appointed as interim CEO.