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Argentina's YPF eyes sale of electricity subsidiary stake to GE -media
July 14, 2017 / 1:56 PM / in 5 months

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

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

The logo of General Electric Co. is pictured at the Global Operations Center in San Pedro Garza Garcia, neighbouring Monterrey, Mexico, May 12, 2017. REUTERS/Daniel Becerril

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 (C.N) and Credit Suisse (CSGN.S), 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

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