Argentina
The Government Received Two Proposals in the First Stage of AySA’s Privatization
Two Argentine consortiums submitted technical bids to move forward in the race for control of the company. The national administration aims to raise about US$500 million from the transaction, according to Radio Mitre.
The Government reported that it advanced a new stage in the process to privatize Agua y Saneamientos Argentinos (AySA), with the opening of bids from the groups interested in acquiring 90% of the company’s share capital.
Of the 17 business groups that had expressed interest, only two submitted offers at this stage, according to the official information published on Contrat.Ar. They are the Argentine consortiums Rowing-Arcos-Transclor-PHX, led by Rowing S.A., and Roggio ROAS S.A.U. together with other firms.
Now, an evaluation committee must analyze whether they meet the conditions set out in the tender documents. Those that pass that review will be authorized to submit the financial offer, and the award will go to whoever proposes the highest price.
According to Radio Mitre, the Government is seeking to obtain around US$500 million from the transaction. That outlet also noted that, for now, the submission corresponds to the technical phase and that only later will the amount offered by the successful bidder for the shares be known.
The Minister of Economy, Luis Caputo, said the future operator will have to take on investments of more than US$2,000 million over five years, with the aim of expanding and improving the service.
According to official information, the concession was approved at the end of April for a term of 30 years, with the possibility of extending it by up to 10 more years. The company provides drinking water and sewer services in the City of Buenos Aires and in 26 municipalities in the Buenos Aires metropolitan area.
The defined scheme provides for an initial transfer of 51% of the state-owned shares. Later, in a second stage, an initial public offering would be carried out for another 39%, while the remaining 10% would stay in the hands of employees. The privatization of AySA is part of the companies included in the 2024 Bases Law.
Sources
About this note. 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 event.
