The HCB Case: “Sale of shares will be transparent” Stock Exchange Chairman

The sale of 7.5% of shares representing the share capital of the Cahora Bassa Hydroelectric (HCB) facility on the Mozambican Stock Exchange (BVM) will be a speedy and transparent process, the president of the stock exchange told Mozambican news agency AIM on Wednesday.

The mechanisms for the sale of the shares announced in Songo by the Mozambican President have yet to be disclosed, but Salim Valá, the president of the BVM, said that the criteria for this financial operation would be made public in order to promote greater financial inclusion.

With the sale of the HCB shares, the number of companies listed on the Mozambique Stock Exchanges increases to seven, which will boost the BVA’s market capitalisation.

Valá also said that listing HCB will encourage more public and private companies and business concessions to apply for admission to the stock exchange, “because it is a state-owned company and an example in terms of business management.”

In his assessment of the capital market, Valá pointed out that the current situation is satisfactory, thanks to the growth of the bankarisation rate, which stands at around 25%, as well as financial inclusion of 15%, along with an insurance penetration rate estimated at 7.0%. (source: Macauhub)