YPF, the state-owned oil company, has officially launched the process to sell its majority stake in Metrogas, the country's largest natural gas distributor. The company has authorized Citigroup to seek potential buyers for a 70% stake, expecting to raise over $700 million. A key element to make the transaction viable is the extension of Metrogas's concession term. A source close to the matter commented, "The most important thing about this news is that it is necessary to extend the concession period to give viability to the sale." Metrogas serves over 2.4 million customers, representing about 20% of the residential natural gas market. The outcome of this operation will serve as a key signal about investor appetite for regulated assets in Argentina and the capacity of the new economic framework to sustain long-term investments. Currently, Metrogas has annual sales exceeding $800 million and an EBITDA close to $150 million.
YPF Launches Sale of Metrogas Majority Stake
Argentina's state-owned oil company YPF has initiated the sale of a 70% stake in Metrogas, the largest natural gas distributor. The deal is valued at over $700 million and hinges on extending the company's concession.
