Argentina privatizes state metal firm in Milei era first

By Lucila Sigal

BUENOS AIRES (Reuters) - Argentina's government has privatized metallurgical firm IMPSA, the economy ministry said on Wednesday, marking its first privatization since libertarian President Javier Milei took power just over a year ago promising to shrink the state.

The company's shares will be transferred to the U.S.-based consortium Industrial Acquisition Fund (IAF), whose top partner is Arc Energy, according to an official announcement on Wednesday.

A government commission reviewed bids for IMPSA's sale and recommended awarding shares held by national and provincial governments to the IAF consortium.

Milei campaigned on promises to downsize Argentina's government by privatizing state-owned firms and cutting state funding to private firms, as part of his goal of achieving a "zero deficit" budget.

IAF proposed a $27 million capital injection while requesting until January 31 to secure the refinancing of IMPSA's $576 million in debt owed to creditors, the economy ministry said in a statement.

The firm must secure creditor approval to renegotiate the debt before the contract for the purchase and transfer of shares is finalized, the statement noted.

Founded in 1907, IMPSA manufactures equipment such as turbines, cranes, and reactors for metallurgy, energy generation, and technology sectors.

(Reporting by Lucila Sigal, editing by Nick Zieminski)

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