The Republic of Congo’s government won’t recognize Societe Generale’s (SOGN.PA) sale of its country business to Vista Group because the bank didn’t provide it a right of first refusal.
In a June 12 statement, Congo’s finance minister expressed surprise that SocGen had sold some African companies, notably in the Republic of Congo.
SocGen said on June 8 that Vista Group would buy its Congo Brazzaville and Equatorial Guinea businesses for an undisclosed fee. Societe General Congo was 93.5% bank-owned.
“The Congolese state strongly denounces this approach and considers the agreement of the Societe Generale Group to sell its stake to the Vista Group as null,” the finance ministry statement stated, adding that it did not rule out legal action.
On Thursday, a Congolese finance ministry official told Reuters that the government had been informed of the planned sale but had asked SocGen to wait until it could use its right of first refusal.
“Societe Generale is a responsible player and the local and regional regulatory authorities have been informed,” the French bank stated in an email.
“The completion of these transactions, which could take place by the end of 2023, is subject to the approval of the entities’ governing bodies, the usual suspensive conditions and the validation of the competent financial and regulatory authorities,” it added.
