August deadline for sale of Isagen stake
The Colombian government plans to sell its 57.6% stake in Isagen, a mixed public utility company that generates and sells electrical energy in Colombia.
Colombian state-run utility Empresas Publicas de Medellin (EPM) plans to maintain its own 13% in the firm. EPM requested on 28 July a permit to prepare for negotiations with the investor that will buy the state's stake.
The local power producer owns and operates six electricity generators in the departments of Antioquia, Santander, Caldas and Tolima, which produce 14.5% of Colombia’s energy.
The firm has an installed capacity of 2,212 MW, including hydropower plants of 1,912 MW. The firm is also developing a 820 MW hydroelectric project.
Isagen’s most recent shareholder report announced that the firm has a net profit of US$233.9 million in 2013.
The Colombia's government plans to close the transaction at an auction on August 22nd. The bidders can submit offers from today until mid August.
According to source, the companies competing are, among others:
- Gas Natural Fenosa,
- Duke Energy,
- GDF Suez, and
- Huadian Corporation.
According to the Colombian government the 57.6% stake Isagen could have a total value of US$2.7 million. The government plans to invest the money raised in the sale process in roads and infrastructure projects.
