Valuation of an Expropriated Company: The Case of YPF and Repsol in Argentina

Abstract

On April 16, 2012 the Argentine federal government decreed the intervention of YPF. The share price of YPF fell 29% the next day. Two weeks later (May 3), the Argentine Parliament approved the expropriation of 51% of the YPF shares owned by Repsol. Repsol had a 57.4% stake in YPF. YPF was the second largest company in Argentina. In 2011, sales were $13.17 billion and dividends $1.29 billion.