A Chilean company leaving the country because it is too volatile and is no longer part of its strategy. A group of Argentinean capitals dedicated to energy enters a totally new business. Meanwhile, $70 million changes hands and US$245 million recorded as a loss due to weight loss.
All those condiments have the sale of the business of the Chilean Masisa in the country. On paper, the company central portor, who owns the electric generatoracquired through its subsidiary Proener 100% of the remaining forestry activities of Masisa in Argentina (Forestal Argentina and Masisa Forestal).
There are approximately 72,000 hectares in the provinces of Entre Ríos and Corrientes, of which approximately 43,000 hectares are planted with eucalyptus and pine. The transaction price was US$69,364,162 and was paid in a lump sum.
Why does Masisa sell? They were no longer interested in Argentina: “We are very satisfied with this transaction, which allows us to have an asset in good condition that it was not fully aligned with our strategic plan, and at the same time get out of a complex market with high volatility”explained Castillo, Corporate General Manager of the Chilean company.
Despite the good conditions of the sale, as reported by Masisa to the Chilean Financial Market Commission, the operation will have a negative impact on the assets of about 43 million dollars “product of exchange effect” because the book value of the subsidiaries was recorded in official dollars in Argentina.
Furthermore, the company must write off about 202 million US dollars for the accumulated depreciation of the peso from the initial investment, even though this amount is only countable and does not affect equity, he clarified. In total, a loss of 245 million dollars.
Why buy Central Puerto? The company, which contributes 10% of the country’s private generation, is owned by an investment group led by Guillermo Reca, the Miguens-Bemberg family and Eduardo Escasany (until he decided to retire a few weeks ago , there was also Nicolás Caputo He already has investments in wind energy and is looking to diversify into sustainable activities.
“This acquisition represents a great opportunity for expansion and diversificationin line with the commitment to reduce the impact on the environment,” Central Puerto explained in a note to the Securities and Exchange Commission.
“The company is analyzing investment alternatives in line with the global trend of developing innovative projects that aim at increase environmental performance of companies and contribute to the global goals of decarbonization”,
He added: “The inclusion of these complementary businesses will allow the company to explore new models oriented towards the commitment to reduce the impact of its operations on the environment”.
The departure of foreign companies
The reasons why Masisa left the country are not very original. Basically, they are the same ones who have unmasked all the big companies that have decided to divest themselves of their Argentinean assets, sometimes leaving decades of activity behind them.
One of the last cases was that of Italian group Enel, owner of Edesur and generators that, in fact, compete with Central Puerto. He put all his local assets up for sale.
In recent years, peaking in 2019 and 2020, nearly 30 cases of global companies have left Argentina: airlines (Latam, Norwegian, Qatar, AirNew Zealand and Emirates), auto parts manufacturers ( Axalta, Basf, PPG, Saint Gobain Sekurit), textiles (Nike), pharmaceuticals (Hepatalgina, Gerresheimer, Pierre Fabre) and energy (Raizen Gas), retail (Falabella) and platforms (Glovo), according to a survey by the consultancy firm First Capital.
NEITHER
Source: Clarin
