Argentina: Banks ask US$2b for PRISMA, request deadline deferral

The owners of Prisma, the system that controls Visa operations in Argentina, have asked the National Commission for the Defense of Competition (CNDC) for more time, “until the markets open up for Argentina,” in order to perform the mandatory sale of the system.

“The way the markets are, I do not think there will be a deal this year,” said the owner of one of the banks that manages Prisma, which also includes Banelco and Pago Mis Cuentas. Prisma had until August to divest 51% of the company.

“Since they earn US$250 million annually, they want to obtain at least 8 years of profit. That is the number they have in their heads. The government will give them one more extension because they know that credit to the banks is being cut also in order to help them… ”

Another option contemplated for the operation is for Prisma itself to raise capital in the stock exchange to seek financing for new projects. At the moment, the only offer (for US$1.2 billion) has been made by Advent, former owner of OCA and Fada Pharma in Argentina.

Full Content: Cronista

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