Colombian Court Clears Way for Government to Sell Isagen Stake

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A Colombian court cleared the way for the government to sell its majority stake in hydropower producer Isagen SA after lifting a suspension on the sale.

The Council of State court said in an e-mailed statement that it had lifted its suspension on the sale. The court halted the auction of the government’s stake in May while it ruled on three cases, saying it was seeking to avoid potential damage to the public interest.

The shares gained 9.7 percent to 3,100 pesos in Bogota trading Thursday, the biggest increase since 2009. The stock had reached a high of 3,390 pesos before the suspension, near the minimum price of 3,399 pesos that the government was seeking for its stake.

Engie, the French energy company formerly known as GDF Suez, Brookfield Asset Management Inc. and Chile’s Colbun SA had put down deposits to take part in the auction of the Medellin-based company. A previous suspension was lifted last year.

The court said that it would extend the deadline for the government to complete the sale by 4 months and 10 days. 

The government is seeking to fund highway projects with the sale, which would raise at least 5.3 trillion pesos ($1.7 billion) at the minimum offer price announced in May.