July 14, 2017 / 3:31 PM / a year ago

UPDATE 1-Argentina's YPF eyes sale of electricity subsidiary stake to GE -media

(Adds details of YPF and GE activities in Argentina, background on YPF Energia Electrica subsidiary, including initial valuation)

BUENOS AIRES, July 14 (Reuters) - Argentina’s state-run oil company, YPF SA, is in talks with General Electric Co to sell a 49 percent stake in its electricity generation subsidiary to the U.S. industrial conglomerate, local newspaper Clarin reported.

A YPF spokesman and a GE spokeswoman declined to comment on Friday. The two companies are partnering on several electricity projects in Argentina, Latin America’s No. 3 economy, including plants in the province of Tucuman and near the Vaca Muerta shale field.

Last week, the two companies announced that they had secured $220 million in project financing from Citigroup and Credit Suisse, among others, for two jointly owned thermal power projects.

The value of the potential deal was unclear, and YPF does not publicize the value of the subsidiary, YPF Energia Electrica.

YPF launched the subsidiary in 2013 after acquiring assets from Argentina-based oil and gas company Pluspetrol, which spun off its electric generation business. At the time, the value of the spun-off assets amounted to $485 million, according to a YPF filing.

Reporting by Luc Cohen; Editing by Jeffrey Benkoe

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below