Private Equity Group Halves YPF Acquisition to $1bn

The Argentine private equity group led by the Eskenazi family that is acquiring a stake in YPF, Argentina’s largest energy company, has reduced the size of the acquisition loan it is taking out for the purchase to $1bn, from $2bn, according to bankers away from the deal. The YPF stake is now heard at 14.9% instead of 25.0%. Bankers away from the process say it is a combination of factors that include feasibility of the financing and regulatory issues. On one hand, raising $1bn in acquisition finance is far more manageable than the original $2bn size. And on the regulatory front, acquiring a stake of 15% or more in Argentina appears to require additional procedures with existing shareholders that could slow the process, says a banker. YPF also said Tuesday that it would seek shareholder approval for a $1bn bond offering in a meeting scheduled for January 8.