October 24, 2014
CFK sends draft bill to expropriate Repsol-YPF to Congress
President Cristina Fernández de Kirchner presented a draft bill to expropriate Repsol-YPF oil and gas company at the Government House during a sudden meeting with officials, political leaders, unionists and businessmen.
The draft bill contemplates the expropriation of Argentina's biggest company, with the Argentine State holding 51 percent stake of the 57.43 percent that Spanish Repsol controls since 1999.
Out of the 51 percent expropriated, the Executive Power will own 51 percent which equals to 29.3 percent of the company's stake, while Argentina's 23 provinces plus the Buenos Aires City will own 49 percent of the 51 expropriated to Repsol, thus owning 28.14 percent of the company.
Spanish Repsol will so far preserve 6.43 percent of the company, while 17.09 percent will remain for trade at Buenos Aires, New York and Madrid stock exchanges.
Likewise, the Petersen Group -own by the Ezkenazi family- will keep its current 25.46 percent stake in the company
The event took place at the Women’s Room of the Pink House (Government House), amidst rumours indicating this could be the "big day" after last week’s fiasco when sources close to the government set a false rumour indicating that the President would announce the nationalization of Repsol-YPF oil and gas company, which triggered tons of crossed information plus and abrupt hike of the company's shares in both New york and Buenos Aires stock exchanges; but far from that, Fernández de Kirchner ended announcing the reduction of meat export tax duties from 15 to 5 percent.
The announcement came as the first activity of the President after her arrival from the 6th Summit of the Americas held in Cartagena de Indias in Colombia, where she skipped the closing meeting after reprimanding Colombia’s President Juan Manuel Santos for not having included Argentina’s sovereignty claim over Malvinas, South Georgia, and Sandwich islands in the summit’s agenda.