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State-owned EPM is seeking approval of the sale from the council of Colombia's second largest city Medellín. The firm's management argues EPM will lose an estimated US$250mn if the sale is not approved.
Over the last five years, EPM's 13% Isagén stake has earned it approximately 100bn pesos (US$53.8mn). However, the Colombian government is looking to sell its 57.6% stake in Isagén. EPM leadership worries new Isagén ownership may mean less returns on its stake.
Opponents of the sale argue that EPM, and consequently Medellín, will see increased returns on the 13% stake as Isagén's 820MW Sogamoso hydro plant is set to begin operations soon, the report said.
Sogamoso is expected to meet an estimate 10% of Colombia's electricity needs when fully operational.
BNamericas will host its fourth LatAm Power Generation Summit in Santiago, Chile on August 13-14. Click here to download the agenda.