Potential candidates for the reprivatization of Efacec must send expressions of interest to Parpública by 5:00 p.m. this Monday, according to an announcement published in the press last week, after the failed sale of the company to the DST group.
The “Efacec Reprivatization Announcement”, published by Parpública, determines that “expressions of interest must respect the terms and conditions contained in the document for this purpose made available on the Parpública website, in the tab under the title Reprivatization , and must be sent, together with the accessory documents (in Portuguese or English) that the potential interested party understands to support the criteria of suitability and financial capacity contained in the Resolution of the Council of Ministers No. 107-A/2022 of November 21 ”, until 17:00 (GMT) on December 5, 2022.
In the statement, Parpública recalls that “the reprivatization process” of Efacec, which had determined the sale of the company to the DST group of Braga, having been “approved the new specifications, was determined null and void, without the direct sale being carried out.” for direct sale […] of the shares representing its participation in the capital stock of Efacec Power Solutions, SGPS, SA”.
On October 28, the executive announced that the the sale of Efacec to the DST group did not materialize “since all the necessary conditions for the execution have not been met” of the sales contract.
Government officially assumes that the privatization of Efacec failed. DST wishes Efacec “the best”
On the same day, DST underlined the commitment of all parties involved in the purchase of Efacec, noting that it was not possible to verify the conditions of the company’s sale agreement.
At the end of this stage, it is important to highlight the efforts of all the parties involved who, from the outset, together with DST and its consultants, were strongly committed to the implementation of this operation,” he said in a statement.
“We wish Efacec the best”the group concluded, without adding further details.
On the 21st, a resolution of the Council of Ministers published in Diário da República put an end to the process of selling Efacec’s shares to DST, defending that “the best solution to achieve the objectives defined for this direct sale is to conclude this process, beginning now to prepare a new process, through coordination between the Ministry of Finance and the Ministry of Economy and the Sea”.
“At the same time”, and “considering the evolution of the economic and financial situation reported by Parpública – Participações Públicas, SGPS, SA and by Efacec, according to the documentation sent by Parpública on the reprivatization process carried out”, the resolution determined that it must be “considering the adoption of restructuring measures in order to maintain the operating value of the group and make the conditions for said sale viable.”
The diploma also established that Parpública “propose to the Government the restructuring measuresincluding the possible solutions, duly evaluated and, where appropriate, the respective legal instruments, that are necessary to carry out the sale, even if it is concurrent with it, in order to increase the value of the company, optimizing the financial effort of the State, and that may give rise to adaptations in the structure of the final transaction to be carried out”.
The Government also authorizes Parpública “to ensure the maintenance of the company’s activity, specifically in terms of treasury support, to enable the conditions that allow the reprivatization operation to be carried out, providing it with the respective economic means in accordance with the information” that presented.
Finally, the executive determined that, “until the physical settlement of the sale to be carried out in the direct sale, the Council of Ministers may suspend or annul the reprivatization processprovided that reasons of public interest justify it”, adding that, in this case, “potential bidders will not be entitled, for any of these facts, to any indemnity or compensation, whatever their nature”.
According to the terms of the new terms of reference, the reprivatization “is carried out through a process of sale of shares representing the capital stock of Efacec”, and this process “may be accompanied by a possible capital increase, through monetary contributions, to be made by the selected bidder for the acquisition of shares”.
“At the end of this stage, it is important to highlight the efforts of all the parties involved, who from the beginning, together with DST and its consultants, were strongly committed to the completion of this operation,” said the executive.
In July 2020, Efacec went through a state intervention process and was in the process of being sold to the Portuguese DST.
The entry of the State into Efacec resulted from the departure of Isabel dos Santos, daughter of former Angolan President José Eduardo dos Santos, from the shareholding sphere, after her participation in the “Luanda Leaks” case, in which the International Journalism Consortium of Investigation revealed more than 715,000 files detailing the businesswoman’s alleged financial schemes.
Source: Observadora
