(Alliance News) - Molecular Energies PLC on Tuesday noted the election of "free market economist" Javier Milei as the new president of Argentina, expecting him to remove "many of the current Argentine government restrictions on business".
Shares in Molecular Energies were up 7.3% to 92.25 pence each in London on Tuesday afternoon.
Milei will take office on December 10, with oil, gas and alternative energy company Molecular Energies noting how the proposed changes would particularly benefit its former subsidiary President Petroleum SA.
These relate to foreign exchange and payments abroad, which have "plagued businesses" under the current administration, Molecular Energies said.
"There may be complexities in implementation of such a strategy, but President-Elect Milei has re-confirmed this objective with effect forthwith upon gaining office," Molecular Energies added.
Should they occur, Molecular Energies said the removal of restrictions would allow its former subsidiary President Petroleum to begin repaying intercompany debt outstanding to Molecular Energies in the first half of 2024. Molecular Energies said this is currently in excess of USD13 million, as outlined under the agreement upon which President Petroleum was sold in September.
Molecular agreed to sell the unit to PLLG Investments Ltd for USD40 million in September.
By Greg Rosenvinge, Alliance News senior reporter
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Molecular Enrgy (MEN)