Exxel sells InterBaires

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Following two weeks of speculation in Buenos Aires financial circles, crisis-torn Exxel Group has transferred its 80% shareholding in duty-free operator Interbaires to its main creditor Deutsche Bank

Neither Exxel nor InterBaires have officially confirmed the transfer and neither company was available for comment but a spokesman for Deutsche Bank confirmed that it was the new principal shareholder in Argentina's biggest duty-free shop operator.

The Argentinian economic crisis and the abandoning of dollar-peso parity have given the Exxel Group many headaches. Just two years ago, the Exxel Group, controlled by Juan Navarro was made up of 73 companies. Following the sale of InterBaires, only six companies are in direct control and at least two could go the same way as InterBaires in the next few weeks.

The future for InterBaires seems unclear. Deutsche Bank has stated unofficially that the company is not for sale but if the right offer comes along, InterBaires could be sold swiftly to reduce the banks debts. Sources close to InterBaires commented that the new position would allow the company to pay outstanding debts to suppliers and become more aggressive in the marketplace as passenger traffic in Argentinian airports began to recover.

Industry observers told DFNI that the major problem still to be resolved was the exact situation of the InterBaires contract with airport authority Aeropuertos Argentinos 2000. More than one year ago both companies announced that the original contract would be extended until 2027. As a result of the revised contract more retailing space became available and revised concession fees reflecting the new economic environment came into play. However the Argentine government which holds 20% in InterBaires still had to approve the deal. DFNI understands that the revised contract has still to be approved and it is possible that AA2000 requires the new owners of InterBaires to revert to the original contract. Government approval of the revised contract will also be affected by AA2000's negotiations with the government to revise its own concession agreement.