Transener Dividends Spark Controversy Following Citelec Privatization

The privatization of state participation in Citelec opened a debate over the distribution of Transener dividends. New private shareholders received approximately US$44 million corresponding to accumulated profits while ENARSA still maintained indirect control of the electricity transmission company.

The Ministry of Economy awarded the 50% stake in Citelec held by Energía Argentina for US$356.17 million. The package was acquired by Edison Inversiones and Genneia. Citelec holds 52.65% of Transener, so the stake sold indirectly equated to approximately 26.3% of Argentina's leading electricity transmission company.

Following the shareholder transfer, Transener approved dividends totaling $253.536 billion through partial use of a reserve formed from accumulated results. For their acquired stake, Edison and Genneia each received approximately US$22.3 million.

The controversy centers on the fact that part of those profits had been generated prior to privatization and remained within the company without having been distributed to shareholders. Considering the sale amount and dividend payout, the distribution represented approximately 12.5% of the purchase price paid by the buyers.

The private sector argued that the shares were transferred with the company's existing equity situation at the time of the transaction, including all assets, liabilities, and available funds. Under that criteria, the dividends belonged to those listed as shareholders when the distribution was formally approved.

The transaction was part of the national government's asset sale process and transferred total control of Citelec to private hands. The company holds the majority shareholding in Transener, the transmission operator that manages the high-voltage grid of Argentina's Interconnection System and connects different regions of the country through thousands of kilometers of transmission lines.

With information from Energía Online.