Colombia's EEB to begin divestment process 'shortly'

Thursday, September 29, 2016

Colombian energy group Empresa de Energía de Bogotá (EEB) said it plans to begin the divestiture of non-core assets shortly.

The comment was made during a company presentation on Thursday to unveil its new corporate strategy announced earlier this week.

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The offload will be led by EEB's 15.64% stake in local natural gas transporter and distributor Promigas. The divestment program includes the group's 2.5% interest in local power generator Isagen and 1.67% stake in local power transmission company ISA.

EEB cited a conflict of interest with Promigas, which is a natural competitor of EEB-owned TGI – the country's principal gas transporter. ISA is a competitor in the local transmission sector, added the group.

The divestiture will begin with an offer to workers and pensioners, as required by law, and then to the open market.

In a related note, the government of capital Bogotá submitted a proposal to the city council to sell up to 20% of its 76.3% stake in EEB, proceeds from which would be used for transport infrastructure projects.