The Argentine government plans to initiate the privatization of Intercargo on Friday, potentially raising approximately US$30 million from the sale of its shares.
The Argentine government is set to launch the bid for the privatization of Intercargo, the state-owned company that provides ramp services at airports across the country, on Friday. This decision comes just before the official deadline established by the resolution that initiated the privatization process. The move aims to transfer ownership of 100% of Intercargo's shares to private investors, signaling a significant shift in the management of aeronautical services in Argentina.
According to a valuation conducted by Deloitte, the expected revenue from this privatization could be around US$30 million. Utilizing the Discounted Cash Flow (DCF) method, the consultancy estimated the enterprise value of Intercargo to be roughly $30.145 million. This valuation plays a crucial role in informing investors and shaping the bidding process, providing a benchmark for what the state anticipates receiving from the sale.
This privatization effort reflects broader economic changes in Argentina, where the government has been exploring various avenues to improve efficiency within state-owned enterprises and stimulate investment. The outcome of the bidding process will not only impact Intercargo but could also set a precedent for future privatizations in the country, reshaping the landscape of public asset management in Argentina.
