Government Strengthens Control Over 42 Companies as Anses Holds $13.1 Billion in Assets

by time news

2024-07-28 04:25:00

The pension agency has stakes in 42 local companies

Postponed, at least for the moment, the initiative to transfer the assets held by Anses to the Treasury, the government of Javier Milei did not waste time asserting the public fund’s participation in 42 privately traded companies on the local market. Since January, when it attempted to pass the first version of the “Base Law,” it had to set aside the chapter that ceded control of the Sustainability Guarantee Fund (FGS) of the pension agency to the tax authorities, the government advanced in filling as many positions as possible on the boards of the companies in question.

The shares that form part of the pension fund’s portfolio amounted to USD 13.1 billion as of last November, at the official exchange rate, and represent 17.4% of the total fund. However, of the 42 companies, there are 5 where the FGS’s capital is a considerable proportion of the share package and at the same time are heavyweight players in the local market: Ternium, Pampa Energía, TGS, Banco Macro, and Grupo Financiero Galicia. But not in all cases does the fund manage to appoint board members.

In the annual meetings held this year by local companies, Anses, led by Mariano de los Heros, appointed 29 principal directors in 16 of the companies where, due to the size of its shareholding, it was able to exercise sufficient votes to appoint those in those positions.

Edenor S.A.

  • Principal Directors: Alejandro Sicardi de Estrada, Santiago Eliceche, Luis María Abba, Javier Freigedo, and Flavia Bevilacqua
  • Alternate Directors: Marianela Lago, Hernán Castrogiovanni, Gastón Marra, Guido Gallino, and Gabriela Boichuca

Naturgy

  • Principal Directors: Alejandro Andrés Río and Sebastián Diego Spinelli
  • Alternate Directors: Hernán Castrogiovanni and Luis Bozzani

Distribuidora de Gas Cuyana S.A.

  • Principal Directors: Nicolás Basso and Jeremías Casali
  • Alternate Directors: Hernán Castrogiovanni and Marianela Lago

Ternium Argentina S.A.

  • Principal Directors: Augusto Francisco Javier Bernasconi, Esteban Luis Lancer, and Andrés Spitzer Pavlotzky
  • Alternate Directors: Paula Evangelina Amor and Luis José Quero

Transportadora de Gas del Sur S.A.

  • Principal Directors: Carlos Alberto Caffarini and Federico Alberto Levy Alen
  • Alternate Directors: Hernán Castrogiovanni and Gastón Ignacio Marra

Grupo Concesionario del Oeste S.A.

  • Principal Director: Fabiana Graciela Amores
  • Alternate Director: Mariano Gonzalez Alzaga

Mirgor S.A.

  • Principal Director: Miguel Nuri Harari
  • Alternate Director: Flavia Vanesa Bevilacqua

Pampa Energía S.A.

  • Principal Directors: Julia Sofía Pomares and Lucas Sebastián Amado
  • Alternate Director: Not specified in the list.

Edesa Holding S.A.

  • Principal Director: Alejandro Ciero
  • Alternate Director: Flavia Vanesa Bevilacqua

Edesal Holding S.A.

  • Principal Director: Carlos Marcelo Allovatti
  • Alternate Director: Marianela Lago

Transener Cía. de Transp. de Energía Elec. en Alta Tensión S.A.

  • Principal Directors: Cesar Adrogué, Diego Manuel Moltedo, Sergio Dario Neiffert, and Eliana Stigo
  • Alternate Directors: Flavia Bevilacqua, Luis Bozzani, Gabriela Boichuca, and Hernán Castrogiovanni

Endesa Costanera S.A.

  • Principal Director: Marianela Lago
  • Alternate Director: Paula Evangelina Amor

Camuzzi Gas Pampeana S.A.

  • Principal Director: Jorge Daniel Ortiz
  • Alternate Director: Flavia Vanesa Bevilacqua

Telecom Argentina S.A.

  • Principal Director: Julián Akerman
  • Alternate Director: Alberto Viglino

Aluar Aluminio Argentino S.A.I.C.

  • Principal Director: José Sánchez

Banco Macro S.A.

  • Principal Director: Nicolás Valenzuela
  • Alternate Director: Guido Agustín Gallino

Since the days of the government of Cristina Fernández de Kirchner, only a few of these roles have been key. Siderar -now Ternium- of Techint was one of the battlegrounds as the government wanted the company to distribute dividends to bolster Anses’ coffers.

The other major battleground was Grupo Clarín, where Guillermo Moreno‘s involvement in the assemblies reached the episode of “helmet or glove”.

These key conflicts are now behind. The new philosophy reigning in La Libertad Avanza is far from the objective of intervening in the functioning of the companies or forcing financial decisions. At the Casa Rosada and especially at the Ministry of Economy, they see the portfolio of shares more than anything as an economic asset that could, eventually, be liquidated to obtain several billion dollars. Of course, selling shares is not that easy; the process can be lengthy, and the initiative was cut short in the shortened Base Law that was ultimately approved.

Thus, the government directors of Milei in private companies are a mix of career staff from Anses along with a few businesspeople close to the government who, as stated by those involved in the companies, did not present themselves with explicit objectives beyond asserting the corporate rights of the FGS.

Among the most relevant companies, due to their market value and the portion of capital in the hands of the FGS, some names stand out. Although there are 29 principal seats, there are 26 directors between principal and alternate, as several names are repeated. It is important to clarify: all these board positions, very well compensated, are voluntary in the case of the FGS representatives: the payments they receive go to the state coffers and not to their pockets.

In Banco Macro, Nicolás Valenzuela is the principal director, a graduate in Business Economics with a Master’s in Finance from the Torcuato Di Tella University. Guido Agustín Gallino is the alternate director, a lawyer and Coordinator of Financial and Diversified Entities since 2022.

In Edenor, Marianela Lago, a lawyer with a career of about 20 years at Anses, acts as the alternate director, while Flavia Bevilacqua, also a career lawyer at the agency, is the principal director. Guido Agustín Gallino is also the alternate director in this company.

Hernán Castrogiovanni, a civil servant with a career at Anses since at least 2004, holds the position of alternate director at Naturgy, Distribuidora de Gas Cuyana, Transportadora de Gas del Sur, and Transener Cía. de Transp. de Energía Eléctrica en Alta Tensión.

Lucas Sebastián Amado is the principal director at Pampa Energía. He is a lawyer and has held several positions in the province of Salta government and on the boards of companies such as Edenor, Enarsa, Transener, Citelec, and Transba. He also served as the overseer of Socaya and is a partner at NBF Estudio Jurídico and Salum Amado Abogados.

At Endesa Costanera, Marianela Lago is the principal director and Paula Evangelina Amor is the alternate director. Amor also holds a position as an alternate director at Ternium Argentina.

Flavia Bevilacqua, in addition to her roles at Edenor and Pampa Energía, is the alternate director at Mirgor, Edesa Holding, Transener, and Camuzzi Gas Pampeana.

José Sánchez, who was a lawyer for Yacyretá, is the principal director at Aluar.

Finally, Julián Akerman, a lawyer who replaced Carlos Kikuchi as the proxy of La Libertad Avanza during the electoral campaign that led Milei to the presidency, is the principal director at Telecom.

The state’s participation in YPF, meanwhile, is of enormous relevance. But not so for Anses, with less than 2% of the capital. There, the state does not need the FGS to have a director. A similar case is that of Banco Hipotecario, where the FGS’s shares are lower compared to the state’s participation.

The FGS was created in 2007 in the context of the process of nationalization of the Pension Fund Administrators (AFJP) and the return of the pension system to state control. Among its assets are both financial investments and shareholdings in leading companies, which at one time belonged to the AFJP and since the nationalization have remained in the hands of the state. With the income from the FGS, loans were granted to provinces and beneficiaries of the pension system, and part of the profits is also transferred to the general revenues of the Central Administration of Finance.

According to a report from the management of Anses under the previous government, led by Fernanda Raverta, the FGS had a value of USD 76 billion at the end of November, although it was clarified that this valuation of its assets was made at the official exchange rate of the time, so now, with a parity that went from nearly $370 to $812.20, meaning a jump of almost 120%, it is estimated to have fallen to approximately USD 34.6 billion.

The FGS can be used “to pay the benefits of the Integrated Argentine Pension System and to meet the commitments assumed in Law 27.260 of Historical Repair, investing in projects and instruments that promote the development of the Argentine economy and the long-term local capital market,” according to Anses.

The Future of Anses’ Role in the Market: Trends to Watch

The recent developments surrounding the National Social Security Administration (Anses) reflect a broader trend of government involvement in private enterprises. With Anses holding stakes in 42 local companies amounting to USD 13.1 billion, we can anticipate several potential trends that may affect both the financial landscape and public policy in Argentina.

Increased Focus on Director Appointments

As the government of Javier Milei seeks to consolidate power within a limited scope, the appointment of directors from Anses to various companies will likely become more strategic. With its significant investments in key sectors such as energy and finance, Anses may increasingly wield influence over corporate governance, which could shift company priorities towards more state-aligned objectives.

Market Stability through State Participation

The significant equity held by Anses in major companies serves as a mechanism for stabilizing the market, especially during economic turbulence. This involvement not only ensures that the government can protect its investment but also helps maintain greater market confidence among local and international investors who may view state participation as a risk mitigator.

Transformations in Public Policy

The government’s approach to the Fondo de Garantía de Sustentabilidad (FGS) could lead to shifts in public policy concerning investment practices. Discussions around potential liquidation of these assets point to a changing philosophy that prioritizes economic benefit over direct intervention. Stakeholders will need to keep an eye on how these policies evolve, potentially impacting public sentiment and investment strategies.

Investments for Economic Growth

As Argentina aims to strengthen its economic framework, we may see Anses increasingly repurpose its assets to fund development projects and infrastructure. The FGS, originally set up during the nationalization of pension funds, might be leveraged for ventures that foster economic growth rather than merely serving as a reserve for pensions. This strategic shift could invite international interest in Argentine markets, opening up opportunities for collaboration and investment.

Financial Performance Challenges

Despite the growth potential, challenges remain. The depreciation of the Argentine peso could significantly affect the value of Anses’ holdings, which fell from USD 76 billion to an estimated USD 34.6 billion amidst currency fluctuations. Continuous financial performance volatility may necessitate reforms to ensure the sustainability of pensions and the viability of state-held assets.

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