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MEM Argentina hires PwC for ENARSA–Citelec deal [free access]

May 2, 2018

The Ministerio de Energía y Minería (MEM) or Ministry of Energy and Mining of Argentina has selected Price Waterhouse & Company Asesores de Empresas SRL [a part of PricewaterhouseCoopers (PwC)] as a consultant to provide valuation and financial advisory services for the sale of state energy company Energía Argentina SA’s (ENARSA) shares (50% stake) in Compañía Inversora en Transmisión Eléctrica (Citelec). The latter is the parent of the country’s high voltage grid operator Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. (Transener) with a 52 per cent stake. The contract has been awarded for ARS13.3 million.


The ministry issued the public tender for the same in January 2018. In response to this, six bids were presented by BNP Pariba (for ARS39 million); HSBC Bank Argentina (ARS46 million); Banco Santander Río (ARS22.9 million); Banco Itaú Argentina (ARS30 million); Price Waterhouse & Co Asesores de Empresas SRL (ARS13.3 million); and Citibank (ARS64.5 million).


The decision to divest this strategic asset was announced on November 1 when the government published a decree where it sold its stake in six thermoelectric plants, a portion of the nuclear supplier Dioxitec, and shares in another series of companies in the energy sector.


As per the notice of the ministry, the consultant will have to evaluate the shares of ENARSA in Citelec, and provide comprehensive financial advice for the design and structuring of the share transferring process, as well as assist the ministry during the negotiation and financial closing of the operation. The term of execution of the consultancy is six months. Therefore, it is assumed that the sale should be completed by the end of June 2018.