Repsol regains 6% warranty-stake in YPF and now owns 12.43% of the company
Spain energy Group Repsol regained rights on a 6% warranty-stake in the Argentine oil and gas giant YPF after the Petersen Group, which used to own 25.46% of the company, lost it as the result of not having met payments for the loan through which they initially enter the business without paying a single cent.
Thus, Repsol, which was left with a 6.43% stake in YPF after the Argentine government’s decision of nationalizing 51% of the 57.43% the multinational company Repsol used to own since its acquisition back in 1999, now owns 12.43% of the company.
Repsol’s Chairman, Antonio Brufau, informed during a shareholders general meeting that the Petersen Group had failed to meet their dues in order to clinch the 25.46% package they were offered with, thus activating a warrant clause that allows Repsol to regain a 6% stake in case of breach of contract.
The Petersen group belongs to the Eskenzi family, very close to Nestor and Cristina Kirchner and was invited by the powerful couple to buy into YPF.
In 2008 they received a loan of 1.018 billion dollars from a pool of banks, Credit Suisse, Goldaman Sachs, BNP Paris and Itaú to buy a 14.9% stake of YPF financed by Repsol. In 2011 the Petersen group bought another 10% stake with a 670 million dollars loan from a consortia made up of Itaú, Standard Bank, Crédit Suisse, Santander and Citi banks.
Until last year the Eskenazi group was using YPF dividends to pay back the loans. In fact the agreement signed between Repsol and the Eskenazi in 2008 stated that every year the oil and gas company would distribute 90% of profits among shareholders, a condition imposed by the Argentine government of the Kirchner couple to ensure debt payments.
Repsol CEO Brufau insisted on the company’s interest of negotiating compensation with the government of Cristina Fernández after the company’s nationalization. Earlier this week Brufau said before shareholders that Repsol will also seek punitive damages from Argentina for the seizure of YPF.
However, fresh demands would raise the stakes in a potentially long legal battle because Repsol has already sued Argentina for 10 billion in compensation over the YPF seizure in a case that could drag on for years.
Repsol has also taken steps to file a complaint at the World Bank's International Center for Settlement of Investment Disputes (ICSID).
Repsol unveiled a four-year strategic plan earlier this week, pledging heavy investment in its exploration business in a bid to recover from the blow of the loss of YPF.
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I don't know anything about Argentinean corporate law but, in the UK, there are various thresholds which allow shareholders to block certain actions of the company (this is normally around 20%). Repsol could pull a funny one here, buy up YPF shares listed in America (up to the threshold), and make running the company difficult. After all, it wouldn't be expensive as the shares happened to have lost a great deal of their value recently...
They got themselves into a mess and it is all falling apart now. Hopefully the new Gov't will be smarter and honorable but I'm not holding my breath.
What are you after? A cabinet post or a shag? I don't know how you expect anyone else around here to take you seriously.
CFK then expropriated YPF for paying excessive dividends and not investing enough in Argentina. Did I also mention YPF had to sell oil to Argentina at well below market price too?
You simply couldn't make this up as it's too idiotic to believe.
One of the reasons Argentina is excluded from the world money markets. It'd be like lending your blood to Dracula.
I have a feeling all of this and the economic crash will hit at the same time. Maybe that is what they're all waiting for...full impact. Good lesson for rogue nations.
Not dollars, of course. Saving in dollars is only allowed for government officials.
Scottie_KIrchner: I think I will start calling you Blind_Scottie_Kirchner to fit the facts.
Rogue nations? Nope, a country that wants nothing to do with you. And that boobooes your pride because you think everyone wants to be your friend.
Argentina will never do as the UK, USA, and EU demand. We are a country, not your vassal. That's what you people don't get, and what will ultimately bring your destruction.
If Argentina had a billion people, we would be top dog over you.
I'm not impressed by countries that bully other countries 10 times smaller in population. It is caitiff quite honestly.
Did you hear Kicilloff today? What a MORON!
I heard 150K was the going price per vote for the new BA tax plan. That sounds like democracy to me does it to you?
Dude I know little about Buenos Aires province politics, why do you keep asking me about it? Do you know about the politics of the states you don't live in?
There are no protests in Mendoza, no strikes, no salary controversies. We didn't have any problems in 2001 as a province, we are going to have them now with record tourism, record wine exports, and the Vaca Muerta find lurking in the future?
We will make Argentina abide by its treaties and pay its debts just wait and see. It may be as soon as this year but definitely next year.
BTW BA is your largest population center BY FAR 1/2 the country lives there so if I were you I would pay attention to the politics. You pretend to know more of the USA, 15 hrs away by plane than you do of BA it'a a little dis-ingeniousness don't you think?
Wine sales are still great to the US post act of agression, EU and UK will even be less effective as they are not as hardcore spartan people. Chileans and Brazilians actually spend quite a bit of money in Mendoza because the tourist we get are high-end for the boutique wine lodges and the ski resorts (rich brazilians adore to ski), and we are the main getaway city for Chileans from Santiago and Valpo regions which are half the population of the country, so we always draw them in great numbers, and sheer volume more than outweighs frugal spending habits. And Europeans adore Mendoza, Americans keep coming in great numbers there was an article on this just the other day on Los Andes. I'll bring it for you.
www.losandes.com.ar/notas/2012/5/30/duplico-numero-turistas-extranjeros-visitan-mendoza-645521.asp
100% increase in tourist since 2002, 90% increase in flights to Mendoza (this when the aviation industry in Argentina is DEAD).
Within days of the expropriation British, German, and Chinese cos were asking for the rights, and that's even as the specter of legal action was raised by Repsol.
HECK, even REPSOL is back in the game a bit with YPF. Imagine in a couple of years when the dust settles and internal fuel prices inevitably are brought to near international levels.
Plus, we have great companies like IMPSA world's biggest hydro and wind co, UN Cuyo runs Balseiro institute which helps at INVAP (world leader in satellite engineering and building, plus medical nuclear reactors), we have one of the world's premier eye-institutes (Saldivar Institute), Latin America's biggest mineral water industry (Villavicencio and Eco de los Andes). Add to that the oil, the ski resorts, the wine region, and that we are the retail center of the Cuyo region (4 shopping malls).
3% unemployment.
Plus, we have great companies like IMPSA world's biggest hydro and wind co,
im afraid it dosent even make the top ten
Well the tide could go lo but if the ship is sound, it always stays above the waves.
You trully hate Argentina with a passion, never miss a change to say USA will destroy US, UK will bomb us, EU will bankrupt us, Chile will invade us, Brazil ditto, etc... you are a sad individual with a massive issue with us.
Do you think she will notice that one of the curtains is missing from the front room?
a round up of the argentinain news lol
There is nothing inherently wrong with socialism. It is how iti s applied, just as capitalism, that determines result.
In small countries in population, territory, and racial/ethnic composition, socialism tends to work much better. People are much closer, there's fewer of them and are homogeneous in values. In countries like New Zealand, Uruguay, Denmark, Finland, Costa Rica, such a system can work.
In huge countries, capitalism works much better because there are simply too many people, to huge a landmass, and to many different views and races to make it work from a socialistic office. Thus China, Russia, Brazil have done much better under a free-market mercantilist system, as has the USA. Also, countries with over 100 million people have “critical mass”, for a capitalist system to thrive: attracting brainpower, factories, and investment because there is a self-sustaining market.
You give the peronists too much credit. Ultimately, Argentina cannot prosper because it is too big to be socialist (thus corruption eats the system due to population, and the vast distances between cities), but too small to be capitalist (cannot sustain an internal market that can hold its own against international crisis).
Argentina is screwed because there is no system in existence today that is fit for the size of the country.
Please give example where socialism has worked for all people living under the system?
Their GINI levels are increbibly low. That is the point of socialism, to provide a counterbalance and prevent massive inequalities in wealth.
you can write second paragraph in Norwegian nynorsk accent .
Sorry to disagree with you. Norway and Sweden are not socialist, their policies are. Yes they have free health care, free eduaction, social housing, unemployment benefit, etc, etc. Has does the UK. Whilst their GINI levels are low, these social services are paid for by money from other sources, has they are in the UK. There is no such thing as true socialism, the history of the 20C proved it. USSR and China, theonly two truly socialist states of that century have abandonned it. China still calls itself a socialist state, but if your honest, you know it is not. Who is left, Nth Korea? where the poor starve equally and ruling classes thrive.
Well said sir!!!!
Naw just to wind up the right wing trolls. Don't think Elaine, cougar that she is, is interested and my views probably won't lead to me getting headhunted by Cameron!
#7 “Bk's posts are so creepy they make my skin crawl”
I could say the same for you Mr Might Is Right yanqui
#15 “The Mad Bitch of Argentina looks a LOT older now than she did in that photo, and it's not yet four years old”
I think she's getting better and better with age, like a fine wine =)
#30 “China, Russia, Brazil have done much better under a free-market mercantilist system”
I wouldn't defend everything in the old USSR but its a fact that living standards dramatically fell when Russia moved to a free market system.
#38 And people say I'm creepy lol
I don't think your creepy at all.
Well, there are two scintilating examples of your supporters to be proud of.
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