Congo slams Societe Generale’s sale of its local branch to Vista Group

Authorities of Congo Brazzaville have rejected Societe Generale’s sale of its country subsidiary to Vista Group because the bank did not give it a right of first refusal, and wields legal action, Reuters reports.

The Finance ministry of the central African country in a statement indicated that it was surprised by the announcement by SocGen that it had sold some of its subsidiaries in Africa including the one in Congo.

Early this month, June 8, Societe Generale announced pullout from four African countries including Congo. The France-based financial institution said it was selling its subsidiaries in Congo and Guinea Equatorial to Vista Group for an undisclosed amount. The bank owned 93.5% of Societe General Congo.

“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 said, adding that it did not exclude the use of legal recourse against Societe Generale.

An official who did not want to be named told Reuters that the central African country had been informed of the planned sale but had asked SocGen to hold off on any decision because it wanted to exercise its right of first refusal.

Societe Generale in a statement announced that the transaction could be complete by the end of 2023 and is subject to the approval of the entities’ governing bodies, the usual suspensive conditions and the validation of the competent financial and regulatory authorities.