What is Impsa and what is the first company privatized by Javier Milei dedicated to?

The historic metallurgical company in Mendoza Impsa, founded by the Pescarmona family, and with its majority package until now in the hands of the national State, it is the first company to be privatized in the Javier Milei era. With an offer of US$ 27 million as a capital contribution and taking charge of a debt of US$ 576 million, the American firm ARC Energy will retain the state and provincial shares of the electric turbine manufacturer.

He United States investment fund which achieved the pre-award of Impsa (the operation was confirmed this Wednesday by the Minister of Economy Luis Caputo) has a presence in more than 40 countries and generates equipment for the oil and gas industry, and hydroelectric, nuclear, wind and solar photovoltaic energy.

Impsa had been nationalized in 2021 by the government of Alberto Fernández. Then, sources close to the company assured that the agreement included that the company would return to private hands.

63.7% of IMPSA shares are part of the National Productive Development Fund (Fondep), controlled by the Ministry of Economy. And, 21.2% of the shares remained in the hands of the Mendoza government. This 84.9% of IMPSA shares are those that pass to the North American company.

Now, the company ARC Energy will owe close to US$ 7 million, which is 25% of its capitalization proposal. The rest must be disbursed throughout 2025.

Founded in 1907 As Talleres Metalúrgicos Pescarmona, Impsa began manufacturing spare parts for cast iron machinery, gates and equipment for the wine industry, as well as other light metallurgy components. In 1946, the company adopted the name Construcciones Metalúrgicas Pescarmona SRL, marking the first significant change in its structure.

In 1965, the firm became Industrias Metalúrgicas Pescarmona transferring the assets and liabilities of the previous entity, and was registered as a public limited company. Meanwhile, in April 2018, the Shareholders’ Assembly agreed to change its name to Impsa SA, reflecting its modernization and expansion. For more than a century the company was a benchmark in the provision of comprehensive solutions for energy generation from renewable resources.

Its portfolio includes components for nuclear power plants and equipment for the process industry. The company operates through various business units: Hydro, Wind, Nuclear, Services, Oil & Gas/Hydrogen, Photovoltaic, Artificial Intelligence, Cranes and Defense.

Although the company, which was Mendoza’s flagship, was “rescued” by both the National and Provincial States in 2021, the turbulence in Impsa goes back several years. Between 2010 and 2014, the company faced a crucial event, since during that period failed to collect significant sums of money for energy projects carried out in Brazil and Venezuela.

Furthermore, he went through a long period without large projects. The crisis for Impsa came with the collapse of its subsidiary in Brazil, Wind Power Energy (WPE), which accumulated a total debt of 850 million dollars, adding to the 250 million dollars that the company already had. This impact was so severe that the company was unable to meet its obligations and was forced to begin a restructuring process in 2014.

After several years of negotiations, an agreement was reached to transfer 65% of Impsa shares to bondholders, banks and international organizations. This process was approved in October 2017 and was finally completed on April 25, 2018.

In November 2020, the firm carried out a restructuring of its debt in which it was agreed with the creditors to cancel the liabilities with a grace period until 2025. Additionally, a significant reduction in interest to 1.5% was achieved and principal payments will begin in 2028.

Currently, it has a debt of US$576 million. After obtaining approval from the Evaluation Commission of the offers for the sale of the company, the IAF consortium (whose main partner is ARC Energy) requested a deadline until January 31 to obtain refinancing of the company’s debt. Now, you must obtain the consent of the creditors for the renegotiation of the debt and, if you achieve this, the contract for the purchase and sale of shares will be signed and then the transfer will be made.