Argentinian-based electric utility Pampa Energía has signed an agreement to sell its indirect stake in natural gas supplier Transportadora de Gas del Sur (TGS) to Grupo Inversor Petroquímica for $241m.
The deal will allow the company to go ahead with the purchase of Petrobras Argentina.
In May this year, Brazilian-based Petroleo Brasileiro divested its interest of 67.2% in Petrobras Argentina to Pampa Energia in a transaction valued at $892m.
In order to proceed with the purchase, Pampa Energía had participated in talks regarding the sale of its stake in TGS to Neuss Group unit Harz Energy.
Under the latest agreement, Pampa Energía will sell its indirectly-owned 25.5% capital stock and rights within TGS.
Following the signing of the transaction documents, the buyer paid $8m to Pampa Energía as part of the purchase price.
Grupo Inversor will pay an additional $153m at the closing of the transaction for the acquisition of Petrobras Argentina by Pampa.
The remaining $80m will be paid in February next year at a 5% annual interest rate.
TGS was established on 28 December 1992 and supplies gas in Argentina, as well as operates pipeline systems of the country and of Latin America.
Through its Neuba I, Neuba II and San Martín pipelines, the company transports 60% of the total natural gas consumed in Argentina and supplies distributors, electric generators and industries.
