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Central Puerto(CEPU) - 2025 Q1 - Quarterly Report
Central PuertoCentral Puerto(US:CEPU)2025-05-15 17:37

markdown [SUMMARY](index=6&type=section&id=SUMMARY) Overview of the ECOGAS-CEPU split-off merger, detailing its structure, key dates, share capital, approvals, swap ratio, and tax effects [The Split-Off Merger](index=6&type=section&id=The%20Split-Off%20Merger) Details the ECOGAS-CEPU split-off merger, where ECOGAS absorbs CEPU's gas business equity and cash, requiring shareholder and CNV approval - The reorganization is a Split-Off Merger, with ECOGAS as the absorbing company and CEPU splitting off its Divided CEPU Equity[26](index=26&type=chunk) - Divided CEPU Equity includes CEPU's shareholding in Distribuidora de Gas del Centro S.A. (DGCE), Energía Sudamericana S.A. (ENSUD), and ECOGAS, plus **$305,000,000** in cash[2](index=2&type=chunk) - The purpose is for CEPU to split its gas business shareholding, allowing CEPU shareholders to directly hold interests in ECOGAS, ENSUD, and DGCE through ECOGAS[4](index=4&type=chunk) [Companies Share Capital as of December 31, 2024](index=7&type=section&id=Companies%20Share%20Capital%20as%20of%20December%2031%2C%202024) Presents the share capital structure of CEPU and ECOGAS as of December 31, 2024, including shares, face value, and voting rights CEPU Share Capital (as of Dec 31, 2024) | Item | Amount | | :--- | :--- | | Share Capital | $1,514,022,256 | | Shares | 1,514,022,256 book-entry shares | | Face Value | $1 each | | Voting Rights | One vote per share | ECOGAS Share Capital (as of Dec 31, 2024) | Item | Amount | | :--- | :--- | | Share Capital | $229,230,580 | | Shares | 22,923,058 book-entry shares | | Face Value | $10 each | | Voting Rights | Class A and D: one vote; Class B and C: five votes | | Potential Change | 229,230,580 shares with $1 face value (if approved) | [Corporate Authorizations](index=7&type=section&id=Corporate%20Authorizations) Boards of ECOGAS and CEPU approved the reorganization on March 31, 2025, pending shareholder meetings on May 22, 2025, and CNV approval - Boards of Directors of both companies approved the reorganization on March 31, 2025[27](index=27&type=chunk) - Shareholders' Meetings for approval are scheduled for May 22, 2025[27](index=27&type=chunk) - Administrative authorization from the Argentine Securities Commission (CNV) is pending[8](index=8&type=chunk)[15](index=15&type=chunk) [Swap Ratio](index=8&type=section&id=Swap%20Ratio) Outlines the Swap Ratio for CEPU shareholders to receive ECOGAS Class D shares, with adjustments for face value changes and cash payments for fractions Swap Ratio Details | Scenario | Swap Ratio (ECOGAS Class D:CEPU) | New ECOGAS Shares Issued | | :------- | :------------------------------- | :----------------------- | | Initial | 1:186.694 | 8,097,326 | | If ECOGAS face value changes to $1 | 1:18.6694 | 80,973,264 | - Any fractions or decimals of shares resulting from the swap will be paid in cash by ECOGAS within **60** calendar days from the Corporate Reorganization Effective Date[11](index=11&type=chunk)[28](index=28&type=chunk) - The creation of an ECOGAS American Depositary Receipt (ADR) program with the New Shares as underlying securities is currently under negotiation[28](index=28&type=chunk) [Fairness Opinions](index=9&type=section&id=Fairness%20Opinions) VALO and INFUPA provided independent fairness opinions on DGCE, ENSUD, and ECOGAS valuations, which informed the Swap Ratio determination - VALO (for ECOGAS) and INFUPA (for CEPU) issued independent fairness opinions[29](index=29&type=chunk) - The opinions provided an economic and financial viewpoint on the estimated value range of DGCE, ENSUD, and ECOGAS, and the resulting Swap Ratio[29](index=29&type=chunk) [Compliance Report on the Swap Ratio](index=9&type=section&id=Compliance%20Report%20on%20the%20Swap%20Ratio) EY issued a compliance report on the Swap Ratio, reviewing its terms and conditions against the ECOGAS-CEPU Consolidated Split-Off Merger Balance Sheet - Pistrelli, Henry Martin y Asociados S.A. ('EY') issued a compliance report on the Swap Ratio[29](index=29&type=chunk) - The report focused on the terms and conditions of the proposed Swap Ratio regarding the ECOGAS-CEPU Consolidated Split-Off Merger Balance Sheet[29](index=29&type=chunk) [Companies' Supervisory Committee Opinion](index=9&type=section&id=Companies%27%20Supervisory%20Committee%20Opinion) CEPU and ECOGAS Supervisory Committees reviewed Fairness Opinions and EY Compliance Report, raising no objections to the reorganization terms - Supervisory Committees of CEPU and ECOGAS reviewed Fairness Opinions and the Compliance Report[29](index=29&type=chunk) - They stated no objections to the terms and conditions of the Corporate Reorganization[29](index=29&type=chunk) [Appraisal Right](index=9&type=section&id=Appraisal%20Right) Appraisal rights do not apply to this Split-Off Merger between two public listed companies under Argentine law (LGS) Section 245 - The appraisal right does not apply as per Section **245** of LGS[29](index=29&type=chunk) - This is due to the Split-Off Merger being between two public listed companies under LGS[29](index=29&type=chunk) [Issuance of Shares](index=9&type=section&id=Issuance%20of%20Shares) New ECOGAS share issuance to CEPU shareholders will be published post-approval, with book-entry shares maintained by Caja de Valores S.A - Information on the issuance of New Shares to CEPU shareholders will be published in the BCBA Daily Gazette after competent entity approvals[29](index=29&type=chunk) - The New Shares shall be book-entry shares, with Caja de Valores S.A. keeping their record[29](index=29&type=chunk) [Stipulated Date of the Companies' Special Shareholders' Meeting for the Approval of the Split-Off Merger](index=9&type=section&id=Stipulated%20Date%20of%20the%20Companies%27%20Special%20Shareholders%27%20Meeting%20for%20the%20Approval%20of%20the%20Split-Off%20Merger) Special Shareholders' Meetings for CEPU and ECOGAS to approve the Split-Off Merger are scheduled for May 22, 2025 - The Special Shareholders' Meetings of the Companies have been called for May 22, 2025[29](index=29&type=chunk) [Securities Public Offer Regime and Listing and/or Trading of Shares](index=10&type=section&id=Securities%20Public%20Offer%20Regime%20and%20Listing%20and%2For%20Trading%20of%20Shares) ECOGAS and CEPU are CNV-authorized and BYMA-listed; post-merger, ECOGAS remains public, requiring new share listing authorization - CEPU is authorized as an issuing company by the CNV, with shares listed on BYMA[30](index=30&type=chunk) - ECOGAS is authorized as an issuing company by the CNV, with shares listed on BYMA[33](index=33&type=chunk) - After the Split-Off Merger, ECOGAS will remain within the public offer regime and listing of its shares, and will require public offering and listing authorization for the New Shares[31](index=31&type=chunk) [Bylaws of the Continuing Company](index=10&type=section&id=Bylaws%20of%20the%20Continuing%20Company) ECOGAS's Bylaws will be amended due to the Corporate Reorganization, with a draft in Exhibit F pending shareholder approval - The Bylaws of ECOGAS shall be amended due to the Corporate Reorganization; a draft is included in Exhibit F[32](index=32&type=chunk) - Share capital provisions will not be amended as ECOGAS remains a public offer regime entity, but other sections will be updated to reflect changes related to the sole Class A shareholder[32](index=32&type=chunk) [Split-Off Merger Effective Date](index=10&type=section&id=Split-Off%20Merger%20Effective%20Date) The Corporate Reorganization's effective date is contingent on CNV approval timing, impacting legal, accounting, tax, and operational aspects - The Corporate Reorganization will be effective at **12 a.m.** on the first calendar day of the month following CNV administrative approvals if obtained by the **15th** of that month[33](index=33&type=chunk) - If CNV administrative approvals are obtained after the **15th**, the effective date will be **12 a.m.** on the first calendar day of the second month following approval[33](index=33&type=chunk) - The Boards of Directors may, by mutual agreement, bring forward or postpone the Corporate Reorganization Effective Date[33](index=33&type=chunk) [Tax Issues](index=11&type=section&id=Tax%20Issues) The Corporate Reorganization aims for tax-neutrality under Argentine tax laws (LIG and DRLIG), excluding income and other taxes if requirements are met - The Corporate Reorganization shall be conducted within the framework for reorganizations established by Sections **80** and related sections of LIG and Section **172** of DRLIG[34](index=34&type=chunk) - If requirements are met, the Split-Off Merger shall be excluded from income tax and other Argentine taxes[34](index=34&type=chunk) [Creditors' Right to Object](index=11&type=section&id=Creditors%27%20Right%20to%20Object) CEPU and ECOGAS creditors may object within 15 days, but the merger proceeds, with a 20-day delay for judicial attachment - CEPU and ECOGAS creditors may exercise their right to object as stated in Section **88** of LGS[34](index=34&type=chunk) - The right to object must be exercised within **15** days from the last publication of the Corporate Reorganization legal notice[34](index=34&type=chunk) - Objections shall not prevent the Split-Off Merger, but the Final Agreement shall not be granted for **20** days after the objection term to allow judicial attachment for objecting parties[34](index=34&type=chunk) [Administrative Approvals](index=11&type=section&id=Administrative%20Approvals) The Corporate Reorganization and new share public offering are subject to CNV administrative approval - The Corporate Reorganization is subject to administrative approval by CNV, as is the public offering of the New Shares[34](index=34&type=chunk) [BRIEF DESCRIPTION OF THE COMPANIES](index=12&type=section&id=BRIEF%20DESCRIPTION%20OF%20THE%20COMPANIES) Overview of CEPU and ECOGAS, detailing corporate information, business activities, assets, subsidiaries, governance, and economic group structure post-merger [CENTRAL PUERTO S.A.](index=12&type=section&id=CENTRAL%20PUERTO%20S.A.) CEPU is an Argentine electrical energy generator with thermal, hydro, and renewable assets, also investing in gas distribution, forestry, and mining [Corporate information](index=12&type=page&id=Corporate%20information%20%28CEPU%29) - CEPU (Tax ID No. **33-65030549-9**) is incorporated under Argentine laws, with legal domicile at Tomas Edison **2701**, City of Buenos Aires[36](index=36&type=chunk) - Registered with the Business Entities Registry for the City of Buenos Aires on March **13**, **1992**[36](index=36&type=chunk) [Brief Background](index=12&type=page&id=Brief%20Background%20%28CEPU%29) - CEPU was created by Decree No. **122/92** as part of the privatization of electrical power generation[37](index=37&type=chunk) - The Group owns thermal power stations (Puerto Nuevo, Nuevo Puerto, Luján de Cuyo, Brigadier López, Terminal **6** - San Lorenzo, Costanera) and the hydroelectric complex Piedra del Águila[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk) - CEPU Group is involved in natural gas distribution (through ECOGAS Group), forestry (Proener S.A.U.), and mining (Diablillos silver/gold, Tres Cruces lithium projects)[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) [Subsidiaries](index=13&type=page&id=Subsidiaries%20%28CEPU%29) - Central Vuelta de Obligado S.A. (CVOSA): CEPU holds **55.89%** of voting rights[47](index=47&type=chunk) - Proener S.A.U.: **100%** controlled by CEPU, involved in energy and forestry investments, controlling several forestry companies[50](index=50&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - CP Renovables S.A.: **100%** controlled by CEPU, develops renewable energy projects, and is undergoing a merger by absorption with CEPU[51](index=51&type=chunk)[52](index=52&type=chunk) [Affiliates](index=16&type=page&id=Affiliates%20%28CEPU%29) - CEPU Group's shareholding in Termoeléctrica José de San Martín S.A. (TJSM) is **10.90%** and in Termoeléctrica Manuel Belgrano S.A. (TMB) is **12.26%** as of February **17**, **2023**[69](index=69&type=chunk) - CEPU holds **26.17%** of Ecogas Inversiones S.A., with direct and indirect shareholdings in DGCE (**38.56%**), ENSUD (**27.85%**), and DGCU (**24.36%**)[70](index=70&type=chunk) - CEPU subscribed **27.5%** of 3C Lithium Pte. Ltd. for the Tres Cruces lithium mining project and Proener S.A.U. increased its shareholding to **9.9%** in AbraSilver Resource Corp. for the Diablillos silver-gold project[73](index=73&type=chunk)[74](index=74&type=chunk) [Directors and main executives](index=18&type=page&id=Directors%20and%20main%20executives%20%28CEPU%29) - The Board of Directors of CEPU is formed by **9** directors and **8** deputy directors, with Osvaldo Arturo Reca as Chairman[75](index=75&type=chunk) CEPU Main Executives | Name | Position | | :--- | :--- | | Fernando Bonnet | Chief Operating Officer | | Enrique Terraneo | Chief Financial Officer | | Justo Saenz | Administration Manager | | Gabriel Ures | Commercial Manager | | José Manuel Pazos | Legal Department Manager | | Adrián Salvatore | Institutional Relationships Manager | | Leonardo Katz | Strategic Planification Manager | [Statutory Audit Committee](index=19&type=page&id=Statutory%20Audit%20Committee%20%28CEPU%29) - The Statutory Audit Committee of CEPU is formed by **3** members and **3** deputy members, appointed by the Shareholders' General Meeting on April **30**, **2025**[78](index=78&type=chunk) [Supervisory Committee](index=20&type=page&id=Supervisory%20Committee%20%28CEPU%29) - The Supervisory Committee of CEPU is formed by **3** members and **2** deputy members[80](index=80&type=chunk) - Accountant Pablo Decundo from EY holds the position of external auditor, with Diego Hernán Christensen as deputy[80](index=80&type=chunk) [Share Capital. Shareholders. Ultimate Beneficial Owners](index=20&type=page&id=Share%20Capital.%20Shareholders.%20Ultimate%20Beneficial%20Owners%20%28CEPU%29) - CEPU's share capital amounts to **$1,514,022,256**, represented by **1,514,022,256** ordinary, book-entry shares with a nominal value of **$1** each, granting one vote per share[81](index=81&type=chunk) - The shares are admitted to the public offering regime in Argentina and listed on BYMA[81](index=81&type=chunk) - The only individual qualifying as the ultimate beneficial owner of CEPU is Guillermo Pablo Reca, which will not change as a result of the Corporate Reorganization[81](index=81&type=chunk) [Pending Filings with the IGJ](index=20&type=page&id=Pending%20Filings%20with%20the%20IGJ%20%28CEPU%29) - CEPU will make necessary filings to register authorities appointed at the Ordinary General Shareholders' Meeting held on April **30**, **2025**[83](index=83&type=chunk) - An amendment to Section Four of the bylaws regarding the corporate purpose is pending shareholder consideration at the Extraordinary General Shareholders' Meeting on May **22**, **2025**, and is being processed by the CNV[84](index=84&type=chunk) - CEPU is primarily involved in electrical energy generation, with assets including thermal, hydroelectric, and renewable power stations[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) - CEPU also participates in natural gas distribution (through ECOGAS Group), forestry, and mining[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) CEPU Share Capital Summary | Item | Value | | :--- | :--- | | Share Capital | $1,514,022,256 | | Shares | 1,514,022,256 ordinary, book-entry shares | | Face Value | $1 each | | Voting Rights | 1 vote per share | [ECOGAS INVERSIONES S.A.](index=22&type=section&id=ECOGAS%20INVERSIONES%20S.A.) ECOGAS is an Argentine holding company focused on natural gas distribution and commercialization, controlling key subsidiaries with recent shareholding increases [Corporate information](index=22&type=page&id=Corporate%20information%20%28ECOGAS%29) - ECOGAS (Tax ID No. **30-65827552-2**) is incorporated under Argentine regulations, with legal domicile at Av. Leandro N. Alem **855**, **25th** floor, City of Buenos Aires[85](index=85&type=chunk) - Registered with the Business Entities Registry for the City of Buenos Aires on December **16**, **1992**[85](index=85&type=chunk) [Brief background](index=22&type=page&id=Brief%20background%20%28ECOGAS%29) - ECOGAS was incorporated on December **4**, **1992**, during the privatization process of Gas del Estado S.E[86](index=86&type=chunk) - Through a merger in **2019**, ECOGAS became the controlling entity of DGCE (**55.29%**), ENSUD (**97.05%**), and DGCU (**51%**)[89](index=89&type=chunk)[90](index=90&type=chunk) - A voluntary share swap offer (Dec **20**, **2024** - Jan **13**, **2025**) increased ECOGAS's shareholding in DGCE to **81.64%** and DGCU to **93.10%**[93](index=93&type=chunk)[95](index=95&type=chunk)[99](index=99&type=chunk)[154](index=154&type=chunk) [Subsidiaries](index=24&type=page&id=Subsidiaries%20%28ECOGAS%29) - ECOGAS acts as a Holding of the Group, controlling DGCE, DGCU, ENSUD, and GASDIFEX[100](index=100&type=chunk) - DGCE and DGCU are natural gas distribution companies regulated by ENARGAS, operating in specific Argentine provinces[101](index=101&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) - ENSUD is a gas trader operating in the deregulated sector, supplying clients in the center of the country[109](index=109&type=chunk)[110](index=110&type=chunk) - GASDIFEX S.A. is engaged in the design, manufacturing, and maintenance of gas installations, including GNC dispensing and refueling stations[111](index=111&type=chunk) [Directors and main executives](index=25&type=page&id=Directors%20and%20main%20executives%20%28ECOGAS%29) - ECOGAS's Board of Directors is formed by **10** members and **10** deputy members, with Osvaldo Arturo Reca as Chairman and Guillermo Daniel Arcani as Vice Chairman[113](index=113&type=chunk)[114](index=114&type=chunk) - ECOGAS does not have executive officers or managerial staff on its payroll; it uses a service agreement with its subsidiary DGCE for administrative and other services[115](index=115&type=chunk) [Statutory Audit Committee](index=27&type=page&id=Statutory%20Audit%20Committee%20%28ECOGAS%29) - The Statutory Audit Committee of ECOGAS is formed by **3** members and **3** deputy members, appointed by the Shareholders' Meeting on April **14**, **2025**[116](index=116&type=chunk) [Supervisory Committee](index=27&type=page&id=Supervisory%20Committee%20%28ECOGAS%29) - The Supervisory Committee of ECOGAS is formed by **3** members and **2** deputy members[117](index=117&type=chunk)[118](index=118&type=chunk) - Accountant Diego Hernán Christensen from EY serves as the external auditor, with Gustavo Ariel Kurgansky as deputy[118](index=118&type=chunk) [Share Capital. Shareholders. Ultimate Beneficial Owners](index=28&type=page&id=Share%20Capital.%20Shareholders.%20Ultimate%20Beneficial%20Owners%20%28ECOGAS%29) - ECOGAS share capital amounts to **$229,230,580**, represented by Class A, B, C, and D shares with varying voting rights and a face value of **$10** each (or **$1** if approved)[119](index=119&type=chunk) - Class D shares are currently listed on BYMA[119](index=119&type=chunk) - The ultimate beneficial owners are Guillermo Pablo Reca, Gonzalo Alejandro Peres Moore, and Ronaldo Emilio Strazzolini, which will not change due to the Corporate Reorganization[120](index=120&type=chunk) [Pending registration procedures with the IGJ](index=28&type=page&id=Pending%20registration%20procedures%20with%20the%20IGJ%20%28ECOGAS%29) - ECOGAS will make necessary filings to register the officers appointed at the Ordinary General Shareholders' Meeting held on April **14**, **2025**, and the Board of Directors' meeting dated May **7**, **2025**[121](index=121&type=chunk) - ECOGAS is a holding company primarily involved in natural gas distribution and commercialization[88](index=88&type=chunk)[100](index=100&type=chunk) - It controls DGCE (**81.64%**), DGCU (**93.10%**), ENSUD (**97.05%**), and GASDIFEX (**70%**)[99](index=99&type=chunk)[102](index=102&type=chunk) - ECOGAS recently completed a voluntary share swap offer to consolidate its holdings in DGCE and DGCU[93](index=93&type=chunk)[95](index=95&type=chunk)[154](index=154&type=chunk) ECOGAS Share Capital Summary | Item | Value | | :--- | :--- | | Share Capital | $229,230,580 | | Shares | 22,923,058 book-entry shares | | Face Value | $10 each (or $1 if approved) | | Voting Rights | Class A and D: 1 vote; Class B and C: 5 votes | [ECONOMIC GROUP BEFORE AND AFTER THE SPIN-OFF-MERGER](index=29&type=section&id=ECONOMIC%20GROUP%20BEFORE%20AND%20AFTER%20THE%20SPIN-OFF-MERGER) Illustrates post-merger economic group changes, confirming no mandatory public tender offer and continued joint control of ECOGAS by Class B and C shareholders - The Corporate Reorganization is not subject to a mandatory public tender offer (OPA) as it does not alter control in DGCE by ECOGAS, nor does it involve a change in controlling interest in ECOGAS or CEPU's capital[129](index=129&type=chunk) - Control of ECOGAS will continue to be exercised jointly by Class B and Class C shareholders after the Corporate Reorganization Effective Date[130](index=130&type=chunk)[131](index=131&type=chunk) ECOGAS Shareholder Voting Power (Pre-Merger) | Class | Shares | % of Total | Votes | % of Total Votes | | :---- | :----- | :--------- | :---- | :--------------- | | B | 2,526,954 | 11.02% | 12,634,770 | 30.56% | | C | 2,077,840 | 9.06% | 10,389,200 | 25.13% | ECOGAS Shareholder Voting Power (Post-Merger, assuming $10 face value) | Class | Shares | % of Total | Votes | % of Total Votes | | :---- | :----- | :--------- | :---- | :--------------- | | B | 2,526,954 | 10.10% | 12,634,770 | 29.08% | | C | 2,077,840 | 8.30% | 10,389,200 | 23.92% | [SUMMARIZED ACCOUNTING INFORMATION OF THE COMPANIES AND THE COMPANY REORGANIZATION](index=31&type=section&id=SUMMARIZED%20ACCOUNTING%20INFORMATION%20OF%20THE%20COMPANIES%20AND%20THE%20COMPANY%20REORGANIZATION) Presents summarized accounting information for CEPU and ECOGAS as of December 31, 2024, including individual, split-off, and consolidated merger balance sheets [CEPU Individual Balance Sheet](index=31&type=section&id=CEPU%20Individual%20Balance%20Sheet) Details CEPU's individual financial position as of December 31, 2024, covering capital structure, balance sheet, and investments in associates and subsidiaries CEPU Capital Breakdown (as of Dec 31, 2024) | Item | Amount (ARS) | | :--- | :------------- | | SUBSCRIBED, ISSUED, PAID-IN AND RECORDED SHARE CAPITAL | 1,514,022,256 | | Outstanding shares | 1,502,618,381 | | Treasury stocks | 11,403,875 | CEPU Individual Balance Sheet (as of Dec 31, 2024, in thousand ARS) | Item | Amount (thousand ARS) | | :--- | :-------------------- | | **Assets** | | | Non-current assets | 1,903,516,516 | | Current assets | 228,114,970 | | **Total assets** | **2,131,631,486** | | **Equity and liabilities** | | | Total equity | 1,800,050,674 | | Non-current liabilities | 133,253,042 | | Current liabilities | 198,327,770 | | **Total liabilities** | **331,580,812** | | **Total equity and liabilities** | **2,131,631,486** | CEPU Investment in Associates and Subsidiaries (as of Dec 31, 2024, in thousand ARS) | Investment Type | Book Value (thousand ARS) | | :--- | :----------------------- | | Investment in associates | 109,977,766 | | Investment in subsidiaries | 835,552,120 | [ECOGAS Individual Balance Sheet](index=40&type=section&id=ECOGAS%20Individual%20Balance%20Sheet) Details ECOGAS's individual financial position as of December 31, 2024, covering capital structure, balance sheet, and investments in subsidiaries and associates ECOGAS Capital Breakdown (as of Dec 31, 2024) | Item | Amount (ARS) | | :--- | :------------- | | SUBSCRIBED, ISSUED, PAID-IN AND RECORDED SHARE CAPITAL | 141,787,320 | | Class A shares (1 vote) | 5,998,658 | | Class B shares (5 votes) | 3,369,271 | | Class C shares (5 votes) | 2,770,445 | | Class D shares (1 vote) | 2,040,358 | | **TOTAL Shares** | **14,178,732** | ECOGAS Individual Balance Sheet (as of Dec 31, 2024, in thousand ARS) | Item | Amount (thousand ARS) | | :--- | :-------------------- | | **Assets** | | | Non-current assets | 206,962,689 | | Current assets | 1,839,953 | | **Total assets** | **208,802,642** | | **Equity and liabilities** | | | Total equity | 207,286,641 | | Current liabilities | 1,516,001 | | **Total liabilities** | **1,516,001** | | **Total equity and liabilities** | **208,802,642** | ECOGAS Investment in Subsidiaries and Associates (as of Dec 31, 2024, in thousand ARS) | Issuer | Book value (thousand ARS) | Interest percentage in share capital and votes | | :--- | :----------------------- | :------------------------------------------ | | Distribuidora de Gas del Centro S.A. | 102,860,712 | 55.29% | | Distribuidora de Gas Cuyana S.A. | 95,661,398 | 51.00% | | Energía Sudamericana S.A. | 7,827,440 | 97.05% | | GASDIFEX S.A. | 323,268 | 70.00% | | **TOTAL** | **206,672,818** | | [CEPU Split-Off Balance Sheet](index=44&type=section&id=CEPU%20Split-Off%20Balance%20Sheet) Presents CEPU's special split-off balance sheet as of December 31, 2024, detailing the financial impact of the Divided CEPU Equity split-off CEPU Special Split-Off Balance Sheet (as of Dec 31, 2024, in thousand ARS) | Item | Before Split-off | Split-off Impact | After Split-off | | :--- | :--------------- | :--------------- | :-------------- | | **Assets** | | | | | Non-current assets | 1,903,516,516 | (87,226,733) | 1,816,289,783 | | Current assets | 228,114,970 | (305,000) | 227,809,970 | | **Total assets** | **2,131,631,486** | **(87,531,733)** | **2,044,099,753** | | **Equity and liabilities** | | | | | Total equity | 1,800,050,674 | (57,057,181) | 1,742,993,493 | | Non-current liabilities | 133,253,042 | (30,474,552) | 102,778,490 | | Current liabilities | 198,327,770 | - | 198,327,770 | | **Total liabilities** | **331,580,812** | **(30,474,552)** | **301,106,260** | | **Total equity and liabilities** | **2,131,631,486** | **(87,531,733)** | **2,044,099,753** | - Key split-off adjustments include a reduction in Investment in associates (ECOGAS Group) by **(87,226,733) thousand ARS** and a reduction in Cash and short-term placements by **(305,000) thousand ARS**[158](index=158&type=chunk)[160](index=160&type=chunk) [Consolidated Split-Off Merger Balance Sheet](index=46&type=section&id=Consolidated%20Split-Off%20Merger%20Balance%20Sheet) Presents the consolidated split-off merger balance sheet as of December 31, 2024, showing ECOGAS's combined financial position post-absorption of Divided CEPU Equity Consolidated Split-Off Merger Balance Sheet (as of Dec 31, 2024, in thousand ARS) | Item | ECOGAS (before Split-Off Merger) | ECOGAS (Swap Offer) | CEPU (Divided Equity) | Subtotal | Adjustments and removals | ECOGAS (after Split-Off Merger) | | :--- | :------------------------------- | :------------------ | :------------------ | :------- | :----------------------- | :------------------------------- | | **Assets** | | | | | | | | Non-current assets | 206,962,689 | 255,269,306 | 87,226,733 | 549,458,728 | (35,987,885) | 513,470,843 | | Current assets | 1,839,953 | - | 305,000 | 2,144,953 | - | 2,144,953 | | **Total assets** | **208,802,642** | **255,269,306** | **87,531,733** | **551,603,681** | **(35,987,885)** | **515,615,796** | | **Equity and liabilities** | | | | | | | | Total equity | 207,286,641 | 255,269,306 | 87,531,733 | 550,087,680 | (35,987,885) | 514,099,795 | | Current liabilities | 1,516,001 | - | - | 1,516,001 | - | 1,516,001 | | **Total liabilities** | **1,516,001** | **-** | **-** | **1,516,001** | **-** | **1,516,001** | | **Total equity and liabilities** | **208,802,642** | **255,269,306** | **87,531,733** | **551,603,681** | **(35,987,885)** | **515,615,796** | - After the Split-Off Merger, ECOGAS's issued capital increased to **250,217 thousand ARS** and issuance premium to **345,909,478 thousand ARS**[162](index=162&type=chunk) [REASONS AND GROUNDS FOR THE CORPORATE REORGANIZATION](index=46&type=section&id=REASONS%20AND%20GROUNDS%20FOR%20THE%20CORPORATE%20REORGANIZATION) Outlines the strategic reasons for the Corporate Reorganization, including CEPU's gas business divestment and ECOGAS's industry consolidation and liquidity enhancement [ECOGAS Advantages](index=47&type=section&id=ECOGAS%20Advantages) The Corporate Reorganization benefits ECOGAS through gas industry investment consolidation, increased share liquidity, and strengthened stakeholder relationships - Consolidation of ECOGAS investments in the gas industry by absorbing CEPU's interests in DGCE and ENSUD, reducing capital scattering[167](index=167&type=chunk) - Increased liquidity for ECOGAS shares through a greater percentage available in the market, potentially improving investor perception and share price[167](index=167&type=chunk) - Strengthening of relationships with stakeholders (regulatory bodies, consumers, shareholders) and greater flexibility for adaptation to energy market changes[167](index=167&type=chunk)[168](index=168&type=chunk) [CEPU Advantages](index=48&type=section&id=CEPU%20Advantages) The reorganization benefits CEPU by optimizing decision-making, simplifying its structure, reducing costs, mitigating gas segment risks, and attracting specialized investors - Optimization in decision-making, granting CEPU greater flexibility in managing its main businesses and negotiating with gas suppliers for electrical energy generation[169](index=169&type=chunk) - CEPU structure optimization by detaching from gas distribution, potentially reducing administrative and operation costs and optimizing internal efficiency[169](index=169&type=chunk) - Strengthening and strategic management of risks by separating the gas distribution business, allowing CEPU to focus resources on strategic energy sectors and attract specialized investors[169](index=169&type=chunk) [DESCRIPTION OF THE CORPORATE REORGANIZATION TERMS](index=49&type=section&id=DESCRIPTION%20OF%20THE%20CORPORATE%20REORGANIZATION%20TERMS) Details the split-off merger terms, covering company commitments, general effects, swap ratio, valuations, ECOGAS capital increase, bylaws, approvals, tax, and equity management [General description](index=49&type=section&id=General%20description) ECOGAS and CEPU signed a Previous Commitment on March 31, 2025, detailing Split-Off Merger terms, equity transfer, and ECOGAS's continuation as a public company - The Companies entered into the Previous Commitment on March **31**, **2025**, establishing the terms of the Split-Off Merger[171](index=171&type=chunk) - As a consequence of the Split-Off Merger, the Divided CEPU Equity will be completely transferred to ECOGAS[172](index=172&type=chunk) - ECOGAS will continue as a company whose capital is under the Securities Public Offer Regime, with amended Bylaws[172](index=172&type=chunk) [Companies Commitments](index=49&type=section&id=Companies%20Commitments) Companies committed to facilitating the Corporate Reorganization through CNV prospectus submission, shareholder meetings, creditor notices, final agreement, and regulatory filings - Commitments include submitting the Split-Off Merger Prospectus to CNV and calling Special Shareholders' Meetings[174](index=174&type=chunk) - Companies committed to publishing creditors' opposition notices and managing any objections[174](index=174&type=chunk) - They also committed to entering into the Final Split-Off Merger Agreement and making all required regulatory submissions to CNV, IGJ, and ARCA[174](index=174&type=chunk)[176](index=176&type=chunk) [General Effects of the Split-Off Merger](index=50&type=section&id=General%20Effects%20of%20the%20Split-Off%20Merger) Upon effectiveness, Divided CEPU Equity transfers to ECOGAS, which issues new Class D shares, increases capital, recognizes premium, and maintains public listing - The Divided CEPU Equity will be completely transferred to ECOGAS as from the Corporate Reorganization Effective Date[175](index=175&type=chunk) - ECOGAS will issue **8,097,326** (or **80,973,264** if face value changes) new Class D shares to CEPU shareholders and cancel CEPU's Class A shares in ECOGAS[175](index=175&type=chunk) - ECOGAS's share capital will increase to **$250,217,260** (or **$250,217,264** if face value changes), with the difference recognized as an 'Issuance premium'[175](index=175&type=chunk) - ECOGAS will continue as a public offer regime company listed on BYMA, and negotiations are ongoing for an ECOGAS ADR program[175](index=175&type=chunk)[177](index=177&type=chunk) [Swap Ratio](index=51&type=section&id=Swap%20Ratio) The proposed Swap Ratio for ECOGAS Class D shares to CEPU shares adjusts for face value changes, based on fairness opinions and an EY compliance report [Mechanism for the Determination of the Swap Ratio. Valuations.](index=53&type=page&id=Mechanism%20for%20the%20Determination%20of%20the%20Swap%20Ratio.%20Valuations.) - VALO and INFUPA determined value ranges for DGCE, ENSUD, and ECOGAS using methodologies including Discounted Cash Flows (DCF), Multiples of Comparable Listed Companies, Market Capitalization, and Equity Value of Shares[187](index=187&type=chunk)[189](index=189&type=chunk)[191](index=191&type=chunk)[198](index=198&type=chunk)[205](index=205&type=chunk)[208](index=208&type=chunk) - Valuations were based on Financial Statements as of December **31**, **2024**, management reports, and subsequent material events[188](index=188&type=chunk) Average Value Ranges (US$ million) | Entity | Low (US$ million) | High (US$ million) | Average (US$ million) | | :----- | :---------------- | :----------------- | :-------------------- | | ECOGAS | 488.00 | 560.25 | 524.125 | | ENSUD | 20.90 | 23.95 | 22.425 | | DGCE | 248.60 | 274.98 | 261.79 | [Fairness Opinions](index=56&type=page&id=Fairness%20Opinions) - Fairness Opinions were addressed to the Boards of ECOGAS and CEPU for their consideration on March **31**, **2025**[212](index=212&type=chunk) - VALO and INFUPA assumed the provided information was true, accurate, and complete, without conducting independent audit tasks or due diligence[213](index=213&type=chunk) - The advisors disclaim liability to third parties, and the opinions are governed by Argentine Republic laws[213](index=213&type=chunk) [Compliance Report on the Swap Ratio](index=57&type=page&id=Compliance%20Report%20on%20the%20Swap%20Ratio) - EY certified the Swap Ratio, confirming that the established low, high, and average ranges comply with CNV Regulations (Article **3**, Section I, Chapter X, Title II)[214](index=214&type=chunk)[215](index=215&type=chunk) - EY's work involved comparing information from valuation experts and verifying arithmetic correctness, but it did not constitute a review or technical opinion[214](index=214&type=chunk)[217](index=217&type=chunk) - The proposed Swap Ratio is **1** Class D ECOGAS share for every **186.694** CEPU shares (or **1:18.6694** if ECOGAS face value changes to **$1**)[178](index=178&type=chunk)[181](index=181&type=chunk) - The Swap Ratio considers and adjusts for dividend payments and potential changes in ECOGAS's share face value[179](index=179&type=chunk)[180](index=180&type=chunk) - The Swap Ratio is based on Fairness Opinions issued by VALO and INFUPA, and its compliance has been certified by EY[183](index=183&type=chunk)[214](index=214&type=chunk) [Capital Increase of ECOGAS](index=57&type=section&id=Capital%20Increase%20of%20ECOGAS) ECOGAS will issue new Class D shares, cancel CEPU's Class A shares, increase capital, recognize a merger premium, and maintain its control structure - ECOGAS shall issue **8,097,326** (or **80,973,264** if face value changes) new Class D shares and cancel outstanding Class A shares held by CEPU[218](index=218&type=chunk) - ECOGAS's share capital will increase to **$250,217,260** (or **$250,217,264** if face value changes), with a merger premium recognized[218](index=218&type=chunk) - The control structure of ECOGAS, jointly held by Class B and Class C shareholders, will not be affected[219](index=219&type=chunk) [Bylaws of the Continuing Company](index=58&type=section&id=Bylaws%20of%20the%20Continuing%20Company) ECOGAS's Bylaws will be amended due to the Corporate Reorganization, with a draft in Exhibit F, updating sections related to the sole Class A shareholder - The Bylaws of ECOGAS are amended because of the Corporate Reorganization; a draft is included in Exhibit F[220](index=220&type=chunk) - Share capital provisions will not be amended as ECOGAS remains a public offer regime entity, but other sections will be updated to reflect changes related to the sole Class A shareholder[220](index=220&type=chunk) [Formation of the corporate bodies of the Continuing Company as from the Corporate Reorganization Effective Date](index=58&type=section&id=Formation%20of%20the%20corporate%20bodies%20of%20the%20Continuing%20Company%20as%20from%20the%20Corporate%20Reorganization%20Effective%20Date) No immediate changes to ECOGAS's Board of Directors from the reorganization; Class A Directors will be appointed at the April 14, 2025, Shareholders' Meeting - There will be no changes in the formation of the Board of Directors of ECOGAS resulting from the Corporate Reorganization[221](index=221&type=chunk) - The Shareholders' Meeting on April **14**, **2025**, shall appoint Directors for Class A shareholders, with transitional maintenance of the Board until the next Shareholders' Meeting[221](index=221&type=chunk) [Corporate Authorizations](index=58&type=section&id=Corporate%20Authorizations) CEPU and ECOGAS Boards approved the Corporate Reorganization on March 31, 2025, concluding it is beneficial for both companies - The Corporate Reorganization was approved by the respective Board of Directors Meetings of the Companies on March **31**, **2025**[222](index=222&type=chunk) - The Boards of Directors concluded that the Corporate Reorganization is beneficial to them[222](index=222&type=chunk) [Administrative Approvals](index=59&type=section&id=Administrative%20Approvals) The Corporate Reorganization requires CNV approval and IGJ filing, covering capital increase, new share issuance, bylaws amendments, and public listing authorization - The Corporate Reorganization requires administrative approval from CNV and subsequent filing with IGJ[223](index=223&type=chunk) - This includes approval for ECOGAS's capital increase, issuance of New Shares, bylaws amendments, and authorization for public offering and listing of New Shares on BYMA[224](index=224&type=chunk) [Corporate Approvals](index=59&type=section&id=Corporate%20Approvals) The Corporate Reorganization is contingent upon shareholder approvals at the Special Meetings of both CEPU and ECOGAS - The Corporate Reorganization is subject to obtaining approvals from the respective shareholders at the Special Meetings of the Companies[225](index=225&type=chunk) [Business Management until the Corporate Reorganization Effective Date](index=59&type=section&id=Business%20Management%20until%20the%20Corporate%20Reorganization%20Effective%20Date) CEPU will manage the Divided CEPU Equity from the Previous Commitment date until the Corporate Reorganization Effective Date - From the execution date of the Previous Commitment to the Corporate Reorganization Effective Date, the management of Divided CEPU Equity shall be conducted by CEPU[226](index=226&type=chunk) [Tax Effects of the Split-Off Merger](index=59&type=section&id=Tax%20Effects%20of%20the%20Split-Off%20Merger) The Split-Off Merger is expected to be tax-exempt under Argentine tax laws, avoiding income tax, VAT, and Gross Income Tax on asset transfers if requirements are met - The Split-off Merger qualifies as a corporate reorganization under Section **80** and related provisions of LIG and DRLIG, expected to be free of national taxes[227](index=227&type=chunk) - Profit or loss from the Corporate Reorganization shall not be subject to Income Tax or Value Added Tax[227](index=227&type=chunk) - Revenue related to the transfer of goods resulting from the Corporate Reorganization shall be exempt from the Gross Income Tax in the City of Buenos Aires[228](index=228&type=chunk) [SHAREHOLDERS' MEETINGS](index=59&type=section&id=SHAREHOLDERS%27%20MEETINGS) Outlines details for the Special Shareholders' Meetings of CEPU and ECOGAS on May 22, 2025, covering quorum, majorities, and agenda for merger approval and bylaws amendments [CEPU Special Shareholders' Meeting](index=60&type=section&id=CEPU%20Special%20Shareholders%27%20Meeting) CEPU's Special Shareholders' Meeting on May 22, 2025, requires a 60% quorum and qualified majority to approve bylaws, the CP Renovables merger, and the ECOGAS split-off - The Special Shareholders' Meeting of CEPU is scheduled virtually for May **22**, **2025**, at **2:00 PM**[232](index=232&type=chunk) - Quorum for the meeting is **60%** of voting shares on first call, and **30%** on second call, with resolutions requiring a qualified majority[233](index=233&type=chunk) - Key agenda items include amending Section **4** of the Bylaws, considering the merger with CP Renovables S.A., and approving the split-off merger with ECOGAS, including the swap ratio and related documentation[234](index=234&type=chunk)[235](index=235&type=chunk)[237](index=237&type=chunk) [ECOGAS Special Shareholders' Meeting](index=61&type=section&id=ECOGAS%20Special%20Shareholders%27%20Meeting) ECOGAS's Special Shareholders' Meeting on May 22, 2025, requires a 60% quorum and absolute majority to approve bylaws, the CEPU split-off merger, capital increase, and new share issuance - The Special Shareholders' Meeting of ECOGAS is scheduled virtually for May **22**, **2025**, at **10:00 AM**[238](index=238&type=chunk) - Quorum for the first call is **60%** of voting shares; the second call is valid regardless of the number of shares. Resolutions require an absolute majority of votes present, with special rights for Class B and C shareholders[239](index=239&type=chunk) - Key agenda items include amending bylaws (corporate purpose, share face value, share transfer limitations), considering the split-off merger with CEPU (including financial statements, Previous Commitment, Prospectus, and swap ratio), and approving the share capital increase and issuance of new Class D shares[241](index=241&type=chunk)[242](index=242&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk)[247](index=247&type=chunk) [OTHER RELEVANT INFORMATION](index=63&type=section&id=OTHER%20RELEVANT%20INFORMATION) Provides additional relevant information, including recent ECOGAS dividend decisions and contact details for ECOGAS, CEPU, and their advisors [Information on recent corporate decisions by the Companies](index=63&type=section&id=Information%20on%20recent%20corporate%20decisions%20by%20the%20Companies) ECOGAS approved a cash dividend from Optional Reserve, and the Board recommended allocating 2024 retained earnings to reserves and cash dividends - ECOGAS's Shareholders' Meeting on February **24**, **2025**, approved a cash dividend payment of **$1,140.90268231228** per share from the Optional Reserve, paid on March **10**, **2025**[250](index=250&type=chunk) - The Board of Directors recommended allocating **5%** of **2024** retained earnings to the Statutory Reserve and the remaining balance to cash dividends, pending shareholder approval on April **14**, **2025**[251](index=251&type=chunk) - These recent corporate decisions were known and considered by the valuation experts[252](index=252&type=chunk) [EXHIBIT A (1) ECOGAS INDIVIDUAL BALANCE SHEET](index=65&type=section&id=EXHIBIT%20A%20%281%29%20ECOGAS%20INDIVIDUAL%20BALANCE%20SHEET) This exhibit contains the complete individual balance sheet of ECOGAS INVERSIONES S.A. as of December 31, 2024 - This exhibit provides the complete individual balance sheet of ECOGAS INVERSIONES S.A. as of December **31**, **2024**[255](index=255&type=chunk) [EXHIBIT A (2) CEPU INDIVIDUAL BALANCE SHEET](index=66&type=section&id=EXHIBIT%20A%20%282%29%20CEPU%20INDIVIDUAL%20BALANCE%20SHEET) This exhibit contains the complete individual balance sheet of CENTRAL PUERTO S.A. as of December 31, 2024 - This exhibit provides the complete individual balance sheet of CENTRAL PUERTO S.A. as of December **31**, **2024**[256](index=256&type=chunk) [EXHIBIT B CEPU SPLIT-OFF BALANCE SHEET AND CONSOLIDATED SPLIT-OFF MERGER BALANCE SHEET](index=67&type=section&id=EXHIBIT%20B%20CEPU%20SPLIT-OFF%20BALANCE%20SHEET%20AND%20CONSOLIDATED%20SPLIT-OFF%20MERGER%20BALANCE%20SHEET) This exhibit contains the complete CEPU Split-Off Balance Sheet and the Consolidated Split-Off Merger Balance Sheet as of December 31, 2024 - This exhibit contains the complete CEPU Split-Off Balance Sheet and the Consolidated Split-Off Merger Balance Sheet, both as of December **31**, **2024**[257](index=257&type=chunk) [EXHIBIT C PREVIOUS SPLIT-OFF MERGER COMMITMENT](index=68&type=section&id=EXHIBIT%20C%20PREVIOUS%20SPLIT-OFF%20MERGER%20COMMITMENT) This exhibit contains the full text of the Split-Off Merger Previous Commitment, detailing the agreed terms and conditions - This exhibit contains the full text of the Split-Off Merger Previous Commitment, detailing the terms and conditions of the Corporate Reorganization[258](index=258&type=chunk) [EXHIBIT D FAIRNESS OPINIONS FROM VALO AND INFUPA](index=69&type=section&id=EXHIBIT%20D%20FAIRNESS%20OPINIONS%20FROM%20VALO%20AND%20INFUPA) This exhibit contains the independent fairness opinions from VALO and INFUPA, which provided economic and financial valuations for the Swap Ratio - This exhibit contains the independent fairness opinions from Banco de Valores S.A. (VALO) and INFUPA S.A. (INFUPA)[259](index=259&type=chunk) - These opinions provided economic and financial valuations used to determine the Swap Ratio for the Corporate Reorganization[259](index=259&type=chunk) [EXHIBIT E EY COMPLIANCE REPORT](index=70&type=section&id=EXHIBIT%20E%20EY%20COMPLIANCE%20REPORT) This exhibit contains the compliance report issued by EY regarding the Swap Ratio, certifying its adherence to regulatory provisions - This exhibit contains the compliance report issued by Pistrelli, Henry Martin y Asociados S.A. (EY) regarding the Swap Ratio[260](index=260&type=chunk) - The report certifies the Swap Ratio's adherence to regulatory provisions[260](index=260&type=chunk) [EXHIBIT F ECOGAS BYLAWS](index=71&type=section&id=EXHIBIT%20F%20ECOGAS%20BYLAWS) This exhibit contains the draft of the amended Bylaws for ECOGAS INVERSIONES S.A., reflecting changes from the Corporate Reorganization - This exhibit contains the draft of the amended Bylaws for ECOGAS INVERSIONES S.A.[261](index=261&type=chunk) - The Bylaws reflect the changes resulting from the Corporate Reorganization[261](index=261&type=chunk)