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Colombian EPM completes first stage of divestment in ISA [free access]

June 26, 2019

Colombian public utilities firm Empresas Publicas de Medellin (EPM) has completed the first stage of divestment in local energy transmission company Interconexion Electrica (ISA). In this phase, EPM sold 14.88 million shares, which represent 13.20 per cent of its 10.17 per cent share (with total 112.61 million shares) in ISA. The transaction raised over COP233.63 billion, at a price per share of COP15,700.

 

Selling stake in ISA is a part of EPM’s disinvestment plan to manage its liquidity issues, which arose after the delay in completion of the 2.4 GW Ituango hydroelectric project (HEP) located on the Cauca River in northwestern Colombia, which was originally scheduled to be completed in November 2018. However, in May 2018, construction was postponed due to the near-collapse of the HEP caused by an increase in the flow of the river that supplies water to it. In January 2019, the Board of Directors of EPM approved the sale of the company’s non-controlling minority interest of 10.17 per cent in ISA to raise about COP1-1.5 trillion.

 

(COP1=USD0.00031)