Argentina
The Government Opens Bids to Move Forward with the Sale of AySA
This Tuesday, the first proposals in the tender will be known, as the Executive seeks to transfer control of the company to the private sector. According to Todo Noticias, the transaction aims to raise about US$500 million.
The Government will open bids this Tuesday in the tender to continue with the privatization of Agua y Saneamientos Argentinos (AySA), in a process through which it seeks to raise around US$500 million, according to Todo Noticias.
According to that outlet, the opening of proposals had been postponed at the end of August after some companies asked for more time to complete the documentation. Official sources said the decision was aimed at broadening participation and competition.
The opening of envelopes is scheduled for this Tuesday the 15th at 10 a.m. and corresponds to a “multiple-stage” tender. In this first stage, it will be reviewed whether the bids comply with the legal, technical, economic and financial requirements set out in the terms and conditions. Then only the economic proposals will be evaluated to determine which is the most convenient.
According to Todo Noticias, the plan contemplates the transfer of 90% of the company’s share package. The 51% corresponds to the state stake and, later on, there will be an initial public offering to place another 39% on the stock exchange. The remaining 10% will stay in the hands of employees.
The outlet also reported that the Government had already approved, at the end of April, the concession contracts for 30 years and the mechanism for the transfer of shares. That contract also provides for the possibility of extending the concession by up to 10 more years.
AySA provides drinking water and sewer services in the City of Buenos Aires and in 26 municipalities of the Buenos Aires metropolitan area. These include La Matanza, Quilmes, Avellaneda, Lomas de Zamora, General San Martín, San Isidro, Tigre, Florencio Varela, Merlo and Morón.
To participate, bidders must meet technical, financial and asset requirements. Among other points, the technical operator will have to prove at least five years of experience, within the last ten, in the management of drinking water and sewerage companies in an urban center of at least 1.5 million inhabitants and 500,000 served users.
On the financial side, the terms and conditions require experience or capacity to structure, obtain or participate in financing linked to infrastructure, public services, regulated companies or activities on a scale comparable to AySA for an accumulated amount of at least US$150 million in the last ten years. In addition, interested parties must prove a minimum consolidated net worth of US$300 million. In the case of private equity funds, consortia or other plural asset-management structures, the requirement will be US$1,000 million in assets under management.
Todo Noticias said the initiative is part of the list of privatizations authorized by the 2024 Bases Law.
Sources
Sobre esta nota. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this fact.
