facebook
linkedin
twitter
About Us
  • BFSI
  • Energy
  • Infocom
  • Mining
  • Venture
  • Industry
  • Travel
  • Civic
  • Food, Health, Ag
  • Real Estate
  • Responsibility
  • Economy
  • Law & Justice
  • Interview
  • Analysis
Ecopetrol oil and gas company headquarters in Bogotá, Colombia

Ecopetrol Seeks To Purchase Control of ISA From Colombian Government

Posted On January 27, 2021
By : Loren Moss
Comment: 0
Tag: argentina, bancolombia, barrancabermeja, bolivia, brazil, bvc, bvc: isa, cartagena, central america, chile, colombia, ec, ecopetrol, Felipe Bayón, hsbc, interconectado electrica, InterNexa, isa, minhacienda, nyse, NYSE: EC, opa, peru, public acquisition offer, tender

Today, Colombia’s state-controlled petroleum company Ecopetrol (NYSE: EC) has revealed that it seeks to take a controlling interest in Interconectado Eléctrica S.A. (ISA) by purchasing the 51.4% owned by Colombia’s Ministry of Finance & Public Credit (Minhacienda).

ISA is an international electrical grid operator with positions in the electrical infrsastructure throughout the Andes, including Argentina, Brazil, Bolivia, Chile, Peru, several Central American countries as well as Colombia. In addition to the electrical grid and transmission, ISA provides fiber optics and telecommunications services through its Internexa subsidiary, and operates highway concessions in Chile.

Through the offer and other recent investments in renewable energy, Ecopetrol seeks to diversify away from a pure-play petroleum company. While Colombia is a petroleum exporter, already approximately 80% of domestic electricity is produced via hydroelectric generation. Ecopetrol has traditionally been an upstream and midstream petroleum company with international investments, domestic and offshore oil & gas fields, and two massive refineries in Cartagena and Barrancabermeja, Colombia.

Analysis: The fact that Ecopetrol has gone public with its intentions indicates the near certainty that a deal has been agreed upon in advance within Colombia’s government. It also reveals an intention of the Colombian government to raise cash without further direct indebtedness, by selling one government asset to another, with the acquiring asset raising money in a way that does not affect government credit ratings. Remember that this comes a year after the government pulled $1 billion USD out of Ecopetrol through a special dividend.

“This decision responds to the Ecopetrol Group’s strategy that seeks to strengthen its leadership in the hydrocarbon chain in the American continent, while accelerating its energy transition with an ambitious plan to reduce emissions, grow in renewable sources, and increase gas production. and participation in other energy fields, including transmission, all leveraged on digital transformation and technological convergence,” said the company in a written statement.

The transaction would be carried out through an inter-administrative contract between Ecopetrol and the Ministry of Finance and Public Credit. To make this investment, it is not necessary to make a Public Acquisition Offer (OPA) or tender offer to ISA shareholders, to the extent that the government of Colombia would continue to be the real beneficiary of ISA’s shares and would maintain ultimate control over them.

The transaction would be financed through the issuance of new Ecopetrol shares, equity and other available financing schemes, including the divestment of non-strategic assets. This new issue, if completed, would be the largest in the history of Colombia. The financial structuring of the operation would maintain a level of Ecopetrol indebtedness aligned with its investment grade.

“This acquisition would mean a milestone in Ecopetrol’s history that would strengthen us in the national and international energy sector and allow us to accelerate the energy transition in which we are committed. It would be the birth of a stronger, more resilient conglomerate with a greater capacity to grow in the new era of clean energy,” said Felipe Bayón, president of Ecopetrol.

The investment banking divisions of HSBC and Bancolombia are assisting Ecopetrol in the acquisition effort.

DON'T MISS OUT: The only English-language Colombia news that's strictly business, markets, & investment!
Join global executives & investors by subscribing to our FREE weekly updates
I agree to have my personal information transferred to MailChimp ( more information ) DISCLAIMER: Protección de Datos Personales Artículo 15 de la Constitución Política de Colombia, ley 1581 de 2012 y decreto 1377 de 2013.
We will never spam you or share your email address ¡Nunca Jamás!

Share the news!

  • Facebook
  • Twitter
  • Print
  • WhatsApp
  • LinkedIn
  • Skype

Related

Share your thoughts:

comments

About the Author
Loren Moss is the founder and publisher of Finance Colombia. He has over 20 years of international business experience, including over a decade of experience in securities, insurance, and commercial real estate, at the institutional and international level.
  • google-share
Previous Story

MPC Capital Raises $100 Million USD To Build Green Energy Plants in Colombia, Jamaica, El Salvador

Next Story

Colombia’s Petroleum Sector Bullish On Exploration & Production In 2021

Related Posts

Grand Bahamas photo © Loren Moss
0

Bahamas Seeks Air Connectivity With Colombia

Posted On May 18, 2022
, By Loren Moss
Roberto Kriete, avianca's main shareholder and chairman of the Board of Directors.
0

Shareholders Of Viva, Avianca & Gol Announce The Creation Of Abra Group To Dominate South American Skies

Posted On May 11, 2022
, By Loren Moss
Colombia’s attorney general charged Russian national Sergein Vagin and six other people
0

Alleged Russian Spy Charged…With Running A Gambling Mafia

Posted On April 12, 2022
, By Loren Moss

You must log in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.





Search

RECENT

POPULAR

COMMENTS

The World’s 50 Best Restaurants today reveals Leonor Espinosa of Leo, Bogotá, as the 2022 winner of The World’s Best Female Chef Award, sponsored by Nude Glass

Colombian Leonor Espinosa Named "World's Best Female Chef"

Posted On May 18, 2022
Grand Bahamas photo © Loren Moss

Bahamas Seeks Air Connectivity With Colombia

Posted On May 18, 2022
Roberto Kriete, avianca's main shareholder and chairman of the Board of Directors.

Shareholders Of Viva, Avianca & Gol Announce The Creation Of Abra Group To Dominate South American Skies

Posted On May 11, 2022
Colombia’s attorney general charged Russian national Sergein Vagin and six other people

Alleged Russian Spy Charged…With Running A Gambling Mafia

Posted On April 12, 2022

Viva Launches Nonstop Routes To Buenos Aires, Argentina From Medellín & Bogotá, Colombia

Posted On April 12, 2022

Romanian Cybercriminal Mihai Ionut Paunescu Captured In Colombia

Posted On June 29, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Court Blocks Colombia’s $370 Million USD Emergency Loan To Bankrupt Avianca Airlines

Posted On September 12, 2020

Deadly Riots & Protests Against Police Brutality Break Out Across Colombia

Posted On September 10, 2020

AVIANCA IS BANKRUPT

Posted On May 10, 2020

[…] damn what she said. She and...

Posted On April 4, 2022

[…] by short sellers seeking to...

Posted On March 22, 2022

[…] no longer travel freely...

Posted On March 8, 2022

[…] Duque’s administration will...

Posted On March 8, 2022

[…] See also: 13 Police Injured In...

Posted On March 3, 2022

Watch This!

Consider Advertising With Us

Click here to visit Expat Group's English site

Subscribe Free

don't forget to include "http://"
* = required field
Your Background / Function








unsubscribe from list

RECENT

POPULAR

COMMENTS

The World’s 50 Best Restaurants today reveals Leonor Espinosa of Leo, Bogotá, as the 2022 winner of The World’s Best Female Chef Award, sponsored by Nude Glass

Colombian Leonor Espinosa Named "World's Best Female Chef"

Posted On May 18, 2022
Grand Bahamas photo © Loren Moss

Bahamas Seeks Air Connectivity With Colombia

Posted On May 18, 2022
Roberto Kriete, avianca's main shareholder and chairman of the Board of Directors.

Shareholders Of Viva, Avianca & Gol Announce The Creation Of Abra Group To Dominate South American Skies

Posted On May 11, 2022

Romanian Cybercriminal Mihai Ionut Paunescu Captured In Colombia

Posted On June 29, 2021
Photo montage courtesy EPM

EPM’s Board of Directors Resign En Masse, Creating Crisis For Mayor Daniel Quintero

Posted On August 17, 2020

Deadly Riots & Protests Against Police Brutality Break Out Across Colombia

Posted On September 10, 2020

[…] damn what she said. She and...

Posted On April 4, 2022

[…] by short sellers seeking to...

Posted On March 22, 2022

[…] no longer travel freely...

Posted On March 8, 2022

Watch This!

Contact Us (Click the image):

Pages

  • About Us
  • Colombia Events, Conferences, Festivals and Important Dates
  • Contact Us
  • main
  • Media Partnerships
  • Privacy Policy
  • Search Results
  • Whatsapp test page
Copyright 2014-2020 Finance Colombia All Rights Reserved. We may earn commissions from qualifying purchases.
Posting....
WhatsApp us