Argentina to Privatize Water Company AySA: A Risky Move?
The government announced plans to privatize Argentina’s state-run water and sanitation company, AySA, by transferring 90% of its shares to private entities. The privatization will employ a hybrid approach involving a public bidding process for a strategic operator and an initial public offering to allow other investors to participate. Employees will retain a 10% stake in the company through the existing equity ownership program. Citing the need for modernization and citing a history of financial strain, operational inefficiencies, and infrastructure deterioration under state control, the government believes privatization will improve service quality and pricing.
John Q. Hosedrinker