Angola's dos Santos buys 5% Zon stake from Telefonica to become leading shareholder

10 May 2012

Angolan investor Isabel dos Santos, the daughter of the country’s president Jose Eduardo dos Santos, has acquired an additional 5% stake in Portuguese cableco Zon Multimedia, Reuters reports. Dos Santos purchased the holding from Spanish telecoms giant Telefonica , making her Kento Holding investment arm the company’s largest shareholder with 15%. Sources close to the deal say dos Santos paid Telefonica EUR2.5 (USD3.2) per share for the stake, making the total value of the transaction EUR38 million.

According to TeleGeography’s GlobalComms Database, in January 2012 Zon shareholders voted their approval of a plan to lift voting rights beyond the existing 10% limit, paving the way for existing shareholders such as dos Santos to raise their stakes in the company. Previously, in November 2011 Telefonica indicated that it was looking to divest non-core or underperforming assets in order to reduce debt.

A number of Angolan companies and investors have taken steps to increase their stakes in prominent Portuguese companies in recent months, after the cash-strapped nation became the third euro-zone country to request a bailout from the European Union (EU) and the International Monetary Fund (IMF) in 2011. Earlier this week dos Santos reportedly acquired 9% share in Portugal’s third largest listed bank, Banco BPI.

Portugal, Nos, Telefonica