Fifty-nine state firms in Argentina targeted for privatisation by Milei

President Javier Milei has ordered officials in Argentina’s government to speed up plans to privatise more than 50 state firms. 

According to reports by the financial website Ámbito Financiero and the Noticias Argentinas news agency, 59 public companies in total have been identified for privatisation, either partially or totally. 

The list of firms under analysis was drawn up by the new Agencia de Transformación de Empresas Públicas, headed by Diego Martín Chaher. The 30-strong team has already started assessing the firms, according to reports.

Several iconic names are included on the list, including state airline Aerolíneas Argentinas, satellite company ARSAT, the AySA waterworks and Banco de la Nación. Others include 
Intercargo, ENARSA, Fabricaciones Militares and Banco Hipotecario

President Milei, who vowed to sell off loss-making public companies while campaigning for the Casa Rosada last year, wants to reduce state control over strategic areas of the economy.

Six potential outcomes are being considered for all the firms on the list: privatisation through an Initial Public Offering (IPO), concession sale, transformation, allocation to provincial governments, full closure or association with strategic partners. 

Authorities have planned out three main stages for each firm: definition, preparation and execution. The timescale for all firms should be approximately six to eight months, said officials.

Each firm will be evaluated on a case-by-case basis, assessing financial viability, business opportunities and investor interest. 

For example, in the case of the AySA water company, the government wants to attract a strong operator to assume the management of the company with the possibility of opening up its capital to the stock market. 

Meanwhile, ARSAT has already announced that by 2025 it will seek to privatise up to 49 percent of its capital stock.

The privatisation of flagship carrier Aerolíneas Argentinas is one of the most delicate items on the list. Although the government considers a total privatisation unviable in the short term, specific areas of its operations are already being evaluated, such as ground services or parts of its fleet. 

Talks have been held with the government of Córdoba Province, which has shown an interest in receiving the Embraer fleet (formerly of Austral) and creating a provincial airline.

Despite the challenges, the Milei administration remains confident of its plans and believe privatisation is a crucial step for the modernisation and efficiency of the state apparatus. Even companies which are currently profitable, such as Aerolíneas, run the risk of becoming deficit-ridden if they remain under public control, officials say.

– TIMES/NA