(Ecofin Agency) - The Congolese government goes as far as brandishing legal actions and disclosing its will to acquire a controlling stake in the subsidiary.  

In Congo, the government is opposed to the agreement reached by French banking group Société Générale for the sale of its local subsidiary to Vista Group, a bank holding company founded and managed by Burkinabe banker Simon Tiemtore.

"The Congolese State firmly opposes this move and considers the agreement by Société Générale Group to sell its stake to Vista Group to be null and void. It does not rule out the possibility of legal actions against Société Générale," reads a June 12 press release relayed by some pan-African media outlets. 

The Congolese authorities reveal that on January 25, they officially informed Société Générale of their intention to exercise the government's right to be offered the possibility of buying back the French group's shares, saying they were surprised by the announcement of an agreement with a partner without any prior discussions.  

The State of Congo owns a little over 6.5% stake in Société Générale’s local subsidiary. With such stakeholding, it has the right to oppose the agreement with Vista Group if the board of directors of Société Générale Congo approves the sales agreement.  

No details have been given as to how the Congolese government might regain control of this subsidiary. Also, Societe Generale and Vista Group are yet to officially comment on the opposition, and the transaction's legal advisors have not provided any further clarification. 

Another subsidiary is targetted by Simon Tiemtore: the one in Equatorial Guinea. It is not yet clear whether the country’s authorities will oppose his ambition as Congolese authorities did.