Latin America: Blackstone, GE in talks to buy YPF subsidiary stake

15 December 2017 - 12:00 am UTC

Blackstone and GE Energy Financial Services (EFS) are in talks with YPF to acquire a 50% stake in YPF Energía Eléctrica (YPF EE), said three sources familiar. 

The Argentine oil company announced on 14 December that it would sell 25% of its electricity subsidiary to GE EFS. The sources familiar said Blackstone is negotiating to buy another 25% in TPF EE.

The GE EFS deal is expected to close in 1Q18, according to the first source. 

YPF is selling stakes in YPF EE to fund part of its USD 1.7bn expansion plan for 2018-2022, as reported.

YPF EE is developing a 755MW portfolio of two wind farms (100MW each), a combined-cycle power plant (470MW) and a cogeneration plant (85MW). According to the 12 December statement, the subsidiary is in the development phase for 12 generation projects that could add up to 1,500MW of capacity. 

Its existing assets include two combined-cycle gas plants in the Province of Tucumán and 40% of Central Dock Sud, which owns an 870MW plant on the outskirts of Buenos Aires. The subsidiary has just completed construction for the 110MW Loma Campaña I & II gas-fired power plants in the Province of Neuquen. 

Lazard (financial) and Estudio O’Farrell (legal) are advising the seller, while Marval, O’Farrell & Mairal (legal) are advising GE EFS on the deal. 

General Electric, Blackstone and YPF did not respond to requests for comment in time for publication.

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