Petrominerales Drops Most on Colcap on Sale Delay: Bogota Mover
Petrominerales Ltd. (PMG), a Calgary-based company that draws most of its output from Colombia, fell the most among members of the Colcap stock index as it said the sale of a pipeline stake may take until the fourth quarter.
The shares slid 2.5 percent to 10,340 pesos at 1:13 p.m. in Bogota, extending their weekly decline to 10 percent, the biggest such drop since April. The Colcap climbed 0.8 percent today and has risen 1.5 percent since July 26.
Petrominerales said yesterday in a statement that it will join three other shareholders to sell a combined 27 percent stake in the country’s Ocensa pipeline. Petrominerales said it was seeking to close the sale with the other minority holders in the fourth quarter. That would be a delay from the third-quarter close it said it was seeking when the company announced in May that it had hired advisers to help raise cash.
“People will be holding off from investing until the pipeline disposition is complete,” Darren Engels, an analyst at FirstEnergy Capital Corp. in Calgary, said in a telephone interview. “It’s going to be now at best in October and maybe not until December.”
Engels reduced the rating on the shares from the equivalent of buy to hold.
Petrominerales got approval last month from holders of its 2016 convertible debt to extend a put option to demand repayment until the earlier of February 2014 or 10 days after closing of the sale of its 5 percent stake in Ocensa.
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