Andres Willa Abogado

Executive Summary – Investment Opportunity (Argentina)

I. Strategic Investment Opportunity

A UNIQUE OPPORTUNITY IN NATIONAL ELECTRIC POWER INFRASTRUCTURE

The Argentine National Government has formally launched the privatization process of the country’s main high-voltage electricity transmission company, opening an exceptional window to access a strategic, irreplaceable asset that constitutes a natural monopoly within the Argentine energy system.

The transaction involves indirect control of TRANSENER S.A., the concessionaire of the public service of high-voltage electricity transmission and the structural backbone of the Argentine Interconnection System (SADI).

This represents a singular opportunity for international institutional investors seeking exposure to critical infrastructure assets with regulated cash flows, high operational visibility, and significant upside potential linked to Argentina’s ongoing macroeconomic and regulatory normalization.

II. The Company – TRANSENER S.A.

TRANSENER S.A. is the leading high-voltage electricity transmission company in the Argentine Republic, operating and maintaining the 500 kV backbone grid that connects the country’s main generation centers with national consumption hubs.

Key characteristics:

• Operator of approximately 85% of Argentina’s extra-high-voltage transmission network.
• Critical, non-replicable infrastructure with a long useful life (over 40 years).
• Regulated business with predictable revenues and low demand risk.
• Indirect equity interests in:
  • TRANSBA S.A. (backbone transmission in the Province of Buenos Aires)
  • Transener Internacional Ltda., with operations in Brazi

TRANSENER does not compete: it is the backbone of the Argentine electric system.

III. Transaction Structure – Privatization Process

Pursuant to Resolution MEC No. 2090/2025, published in the Official Gazette, the Ministry of Economy authorized the call for a National and International Public Tender for the sale of shares in CITELEC S.A., the controlling company of TRANSENER S.A.

Legal framework:

• Law No. 27,742 (Foundations and Starting Points for the Freedom of Argentines)
• Decree No. 286/2025
• Decree No. 416/2025 (platform-based procedure)

IV. Asset for Sale

• Tender object: Sale of 50% of the share capital of CITELEC S.A., currently held by Energía Argentina S.A. (ENARSA).
• CITELEC S.A.: Controlling shareholder of TRANSENER S.A. and indirect shareholder of:
  
  
  • TRANSBA S.A.
  • Transener Internacional Ltda.

The acquisition entails decisive participation in the control of TRANSENER S.A., a core asset of Argentina’s national electric system.

V. Process Modality

• Type: National and International Public Tender
• Modality: Multi-stage process
• Platform: [official platform]
• Tender documents: Single Terms and Conditions Document, duly approved and available
• Valuation: Base price determined by BICE S.A.

Base Price

USD 206,200,000

This value reflects a conservative valuation incorporating country-risk discounts and provides a clear upside opportunity for a strategic investor.

VI. Official Tender Timeline

• Submission of inquiries: Until March 13, 2026 – 4:00 p.m.
• Submission of bids: Until March 23, 2026 – 9:30 a.m.
• Bid opening: March 23, 2026 – 10:00 a.m.

The call will be published and disseminated through:

• Official Gazette
• Ministry of Economy website
• World Bank Portal (DGMARKET)

VII. Strategic Takeaways for the International Investor (What Really Matters)

• Natural monopoly asset, impossible to replicate today from an economic, environmental, or political standpoint.
• Critical infrastructure: Argentina’s electric system does not function without TRANSENER.
• Regulated, defensive cash flows with upside potential through tariff normalization.
• Privatization as a re-rating catalyst (governance, financing, valuation).
• Entry at a base price below long-term economic value.

This is not a bet on Argentina. It is the acquisition of essential infrastructure at an Argentine discount.

VIII. Executive Conclusion

The sale process of CITELEC S.A. offers an exceptional and time-sensitive opportunity to acquire a meaningful stake in TRANSENER S.A., one of Argentina’s most strategic infrastructure assets.

I remain available to assess contingencies and adjust strategies in light of this new scenario.

Sincerely,

ANDRES WILLA
Estudio Willa
Abogados & Consultores Tributarios
https://andreswilla.com/
CEL +54 9 11 4187 2011
awilla@estudiowilla.com            

Buenos Aires, Argentina