Isagen Surges as Court Clears $2.6 Billion Government Stake Sale

Isagen SA, the operator of Colombia’s largest hydropower plant, rallied the most since 2009 after a court cleared the way for the government to sell its stake worth at least $2.6 billion.

The shares jumped 6.9 percent to 3,085 pesos at 2:21 p.m. in Bogota, the biggest advance on a closing basis since 2009. The stock was the best performer on the Colcap benchmark equity index, which declined 0.2 percent.

Magistrate Maria Claudia Rojas, the president of the Council of State, said in a phone interview that an order in March that suspended the sale has been lifted. “That means that the Isagen sale is moving forward,” Rojas said.

The council said in a statement that it found proof of the “undesirability of the suspension,” citing evidence from the Finance Ministry that the sale process complied with government rules and that the funds would be used to help finance Colombia’s road construction program known as 4G.

The government’s has said 5 trillion pesos ($2.6 billion) is the minimum price it will accept for its 57.6 percent stake in Isagen.