Argentina’s largest electric utility Pampa Energia revealed that they are selling their indirect stake in the pipeline operator Transportadora de Gas del Sur (TGS) for $241 million. This deal will allow Pampa to work on with the procedures to buy Petrobas Argentina.
The deal between Pampa and Petrobras Argentina was decided in May where the former company agreed to buy the latter for $892 million. To proceed with the deal, Pampa had been negotiating to sell its TGS indirect stake to Harz Energy. The negotiations continued for 45 days but the parties failed to reach an agreement. This allowed the other bidders to come into the picture by mid-June.
Pampa filed details about the deal with the Buenos Aires Stock Exchange, which revealed that out of $241 million, Grupo Inversor Petroquímica, WST and PCT are initially paying $8 million. They will make another payment of $153 million after Pampa completes the purchase formalities of Petrobras Argentina. Pampa must pay the remaining $80 million by February 15, 2017 combined with 5% annual interest.