Argentina Approves Privatization of Metallurgical Company IMPSA

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Argentina's federal government and the Mendoza province's regional administration have approved an offer to acquire IMPSA, a public metallurgical firm, by the Industrial Acquisition Fund (IAF) and Arc Energy (Houston, Texas). This is the first public company sale under Javier Milei's administration, which vowed to sell state companies and reduce government spending.

IAF proposed a capital investment of US$27 million and requested until January 31 to obtain the refinancing for the debt held by the company's creditors, totalling US$576 million. Additionally, IAF will need the approval of the company's creditors to renegotiate the debt in order to finalize the contract and transfer.

This is the first sale of a public company under Milei's administration, who promised to sell state companies and reduce public spending during his government.

The National Development Fund (FONDEP) holds 63.7% of the company's shares and the Mendoza province owns 21.2%, while 9.8% is held by creditors and the remaining 5.3% by the founders of IMPSA.

Among the products built by IMPSA are hydroelectric turbines, generators, cranes, equipment for the nuclear industry, hydrotreating reactors, atmospheric towers for refining, storage tanks and more.

Additionally, the company executes the engineering, procurement and construction of wind and solar projects.

Among the renewable energy projects developed under engineering, procurement and construction (EPC) contracts with IMPSA are the 93-megawatt (MW) Bom Jardim da Serra in Brazil, the 8-MW El Jume windfarm in Argentina, and the 64-MW Arauco Solar Plant in Argentina.

It also has developed turbines for hydroelectric plants for projects in China, Venezuela, Colombia, the Philippines, Malaysia, India and other countries.

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