ISA shareholders approve share issues

- Friday, November 24, 2006

ISA shareholders approve share issues

Colombia's state power and transmission company ISA reported that shareholders have agreed to issue ordinary shares to help finance its investment plan and optimize its capital structure.

ISA plans to issue in the local and/or international markets up to 88.4 million shares, each of which would have a nominal value of 32.88 pesos a share, ISA said in a release. As a result, the total value would be 2.90bn pesos (US$1.26mn).

The unit price is for reference purposes only, an ISA spokesperson told BNamericas, adding that given ISA's current market share price the company estimates the shares to be worth some 500bn pesos.

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The shares represent 8.43% of the company's resulting share capital, the statement said.

ISA expects to issue the shares in April 2007, the spokesperson said.

Shareholders also authorized ISA to issue 58.9 million ordinary shares - which amounts to a 5% stake - to state oil company Ecopetrol. ISA in return will gain 633 million ordinary shares that Ecopetrol holds in local transmission company Transelca.

ISA currently controls 65% of Transelca and Ecopetrol the remainder. Transelca is Colombia's second largest transmission company.

This operation is due to be carried out by the end of next month, the official said.