Global commodities trader Trafigura has agreed to buy Angolan state oil giant Sonangol’s 31.78% stake in Puma Energy for $600 million.

Trafigura and Puma Energy said in a joint statement on April 16 that Puma had also agreed to sell its Angolan business and assets to Sonangol for $600 million, including the Pumangol retail network of service stations, airport terminals and marine terminals.

Puma also has retail and oil storage businesses in Latin America, Asia and Africa.

Puma said last month it would issue $1.1 billion of new stock to strengthen its finances. The company has been loss-making since 2018 and has been selling assets in an effort to stay afloat.

These transactions will allow Puma to reduce its rights issue to $500 million. Combined, they will allow Puma to repay an outstanding 2018 loan, the statement said.

Trafigura’s stake in Puma is expected to rise to over 90% from 55% currently, including the effect of the rights issue.

Puma’s minority shareholders are Angolan firm Cochan Holdings and employees.

Sonangol said in a statement the deal, which will take 6 to 8 months to complete, was in line with its strategy of optimizing its portfolio of assets and focusing on its core business.