Isagen Rallies as Colombia Raises Minimum Price for Stake SaleChristine Jenkins
Minimum price government will seek for stake increased by 22%
Sale process seen restarting after suspension lifted in Sept.
Colombian state-controlled power company Isagen SA rallied the most on record after the government said it was raising the minimum price for the sale of its stake by 22 percent.
The shares gained 13 percent to 3,150 pesos at 9:41 a.m. in Bogota, reaching the highest intraday price in about three months.
Colombia will seek at least 4,130 pesos per share for its majority stake in the company at an upcoming auction, according to an e-mailed statement from the Finance Ministry on Monday, up from the 3,399 peso price set before a court ordered a suspension of the sale in May while it ruled on three cases. When the suspension was lifted in September, the government said it would consider changing the sale price. No date is set for the sale.
“This is a significant increase in the price target and could represent trillions of pesos more for the government provided the foreign parties remain interested,” Rupert Stebbings, the managing director of equity sales at Bancolombia SA, said from Medellin. “With the peso at its current level, it’s more than feasible.”
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.
The government is seeking to fund highway projects with the sale, which would raise at least 6.5 trillion pesos ($2 billion) at the new minimum offer price.