Colombia's EEB cleared to offload stakes

Wednesday, November 30, 2016

Colombian capital Bogotá's municipal council authorized energy group Empresa de Energía de Bogotá (EEB), which it controls, to sell stakes in ISA, Grupo Nutresa and Banco Popular.

EEB Gas also secured approval to sell its interest in Promigas as part of the proposed disposal, which now goes to the mayor's office for signing, the council said in a statement.

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Bogotá finance secretary Beatriz Elena Arbeláez said an auction is planned to be held between April and June following an offer to workers, pensioners and strategic buyers.

Between US$105mn and US$120mn of sale proceeds will go to pay EEB debt, US$78mn-90mn to renewable energies, US$76mn-87mn to gas pipelines and US$43mn-49mn to gas production, according to EEB president Astrid Álvarez.

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EEB saw net earnings in the first nine months of 2016 jump 80.3% to 1.11tn pesos (US$349mn) which the group attributed to higher operational revenue led by the transmission segment as a result of new lines and substations in Colombia and Guatemala.