Isagen Rallies as Two Bidders Register for Colombia's Stake Sale

  • Colombia seeking to raise cash for road plan with Isagen sale
  • Brookfield and Colbun approved to bid in Jan. 13 auction

Isagen SA rallied after two companies registered to bid for a stake in the Medellin-based power company, signaling interest in the sale scheduled for this month even after the government raised the minimum price it’s seeking.

The shares rose 4 percent to a record-high 3,650 pesos at 10:11 a.m. in Bogota after Brookfield Asset Management Inc. and Chile’s Colbun SA were accepted as potential bidders in the Jan. 13 auction of the government’s 58 percent stake. Colombia’s peso led emerging-market gains, climbing 0.6 percent on speculation a foreign buyer would bring dollars into the country.

“If there are two bidders, then it should at least go above the minimum price,” said Camilo Gomez, an analyst at Casa de Bolsa, the brokerage firm of Colombia’s biggest banking group.

Colombia is seeking at least 4,130 pesos per share in the auction, the equivalent of about $2 billion in total. The government plans to use the money to fund a highway building program.

Colbun, Chile’s third-largest power generator by installed capacity, had said last month that it would be evaluating the “convenience and possibility of continuing in the process” after Colombia raised the minimum price.

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