PW
Español

 

PW
Guyana


PW
Trinidad

& Tobago

 

Prices
Graphics

 




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Colombia rethinking on selling stake
in Interconexion Electrica SA-ISA

Brazil Photos/LightRocket


Colombia Is Said to Review Plans to Divest Its Stake in ISA

- Government owns 51.4% of the electricity transmission company
- Administration looking for ways to narrow the fiscal deficit

By Oscar Medina and Ezra Fieser/Bloomberg

BOGOTA
Petroleumworld 01 06 2021

Colombia’s government is reviewing plans to sell a stake in Interconexion Electrica SA that is attracting interest from publicly owned companies, according to people with direct knowledge of the matter.

Grupo Energia Bogota is among companies considering a bid for the stake in the transmission company, while Ecopetrol SA and Empresas Publicas de Medellin could also look at the asset, one of the people said, asking not to be named discussing private matters. The government owns a majority 51.4% stake in ISA, which at current market prices could fetch $4.2 billion.

President Ivan Duque’s administration has identified divestments as a potential source of income to narrow the fiscal deficit to 7.6% of gross domestic product this year and try to stave off the risk of having its credit rating cut to junk. The deficit widened to an estimated 8.9% in 2020 after the government was forced to boost spending to cope with the pandemic.

Electricity company shares recovered from pandemic lows



At the same time, Finance Minister Alberto Carrasquilla has said the government won’t privatize what he has called “strategic” assets. A sale between public companies may help meet both those criteria. The sale would send a message to ratings companies that the government is committed to meeting its fiscal targets, the person said.

ISA, Empresas Publicas de Medellin and Grupo Energia Bogota declined to comment. The Finance Ministry and Ecopetrol didn’t reply to requests for comment.

While Ecopetrol is owned by the national government, Grupo Energia and Empresas Publicas de Medellin are controlled by regional authorities.

A bidding process could be launched in the coming months, the person said, though previous attempts to sell the asset in 2019 were called off. This time however, the government needs the revenue to finance its 2021 budget.

Empresas Publicas de Medellin currently owns 8.8% of ISA and Grupo Energia Bogota sold a 1.7% stake in the firm in 2017. Ecopetrol, the state-run energy producer, is advancing in renewable plans with solar energy projects.

ISA, which operates energy transmission lines and highways in Latin America, has a market value of 28 trillion pesos ($8.1 billion), according to data compiled by Bloomberg. ISA shares have rallied 23% in the past year on Colombia’s Colcap index, while the local stock market overall fell nearly 16% in that period.

______________


By Oscar Medina and Ezra Fieser/Bloomberg

bloomberg.com
01 05 2021

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep /
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2021, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2021, Petroleumworld   / Elio Ohep - All rights reserved

 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.