EEB Drops on Ecopetrol’s $572 Million Sale Plan: Bogota MoverChristine Jenkins
Empresa de Energia de Bogota SA fell from a three-year high as state-controlled oil producer Ecopetrol SA, the company’s second-biggest investor, said it will sell its stake.
Shares of EEB, the Colombian capital’s power utility, dropped 2.9 percent to 1,700 pesos at the close of trading in Bogota after earlier tumbling 5.7 percent.
Ecopetrol, which has posted three straight quarterly declines in oil output, said in a filing today that proceeds from selling its 6.9 percent stake in EEB would help pay for its investment plan next year. Colombia’s council of ministers approved the sale of the stake, which was worth 1.1 trillion pesos ($572 million) at the close of trading yesterday.
“The big questions now are: when will the sale be, and at what price?” Jaime Pedroza, an analyst at Credicorp Capital’s Colombia unit in Bogota, said by phone. “Ecopetrol has to set a price that’s attractive for them, and that will set the path for the shares in the short term.”
Ecopetrol will seek to start the sale process before year-end, according to an e-mailed reply to questions. EEB closed at 1,750 pesos yesterday, the highest since April 2011. EEB is controlled by the city of Bogota, which has a 76 percent stake, according to data compiled by Bloomberg.