Colombia reviewing plans to divest its 51% stake in ISA

Colombia’s government is reviewing plans to sell a stake in Interconexion Electrica SA. Grupo Energia Bogota, Ecopetrol SA and Empresas Publicas de Medellin are among the companies considering a bid for the stake in the transmission company. The government owns a majority 51.4% stake in ISA, which at current market prices could fetch $4.2 billion. President Ivan Duque’s administration has identified divestments as a potential source of income to narrow the fiscal deficit to 7.6% of gross domestic product this year and try to stave off the risk of affecting its credit rating. The deficit widened to an estimated 8.9% in 2020 after the government was forced to boost spending to cope with the pandemic. ISA, which operates energy transmission lines and highways in Latin America, has a market value of $8.1 billion, according to data compiled by Bloomberg.

Source: Bloomberg