Pampa Energia sells TGS shares to finance the acquisition of Petrobras Argentine subsidiary

Marcelo Mindlin, main shareholder of Pampa Energia is looking for funds to acquire the Argentine subsidiary of Petrobras. He needs nearly US$ 1,200 million to get the assets that Petrobras Argentina (PESA) has in the local market. In this context, the owner of Pampa Energía offered for sale the shares he has in Transportadora Gas del Sur (TGS) where it holds 25% of CIESA, the controlling company of TGS. The remaining shares of CIESA belongs to Petrobras. CIESA is the owner of 53% of TGS, while the other 47% is listed in the stock exchange. The impossibility of reaching the control of TGS leads Mr. Mindlin to get rid of his shares, obtaining a sum of US$ 250 million with this transaction. Adding this to the US$ 500 million that he hopes to achieve with the launching of certain securities approved by the National Securities and Exchange Commission will represent a good start for his landing in PESA. The cash balance of Pampa Argentina will also  contribute with US$ 300 million. He is also considering a loan from several international banks.

Currently he is under an exclusivity period to negotiate for the acquisition of the 62.7% of PESA, while the remaining 37.3 is listed in the stock exchange. The target operates a refinery in Bahía Blanca, more than 100 service stations, shares in TGS, the thermoelectric station Genelba and the hydroelectric Pichi Picún Leifú, and several petrochemical plants in Bahía Blanca and Santa Fe. This are the remaining assets of Petrobras in Argentina, after the purchase by Cristobal Lopez in 2011 of the refinery in San Lorenzo and 365 service stations, per US$ 110 million.