Brookfield seeks investment bank for Colombian distributor sale

25 January 2019 - 12:00 am UTC

Canadian infrastructure investor Brookfield is talking to investment banks about selling its regional distribution company Empresa de Energía de Boyacá (EBSA), two sources briefed told Inframation.

The first source said that it is still very early in the process a sellside advisor has not been mandated as of yet.

Brookfield acquired the distribution company when the Colombian government auctioned its 99.4% stake in December 2011 for COP 807.68trn (USD 416.6m).

Brookfield acquired the distributor through its USD 2.7bn Brookfield Americas Infrastructure Fund, which closed in September 2010.

The first source said that the asset could have increased in value because the city of Tunja in the Boyacá region has grown into a significant university town with expansions to several campuses in recent years.

However, the Colombian peso has also since devalued to 3,152 pesos to the dollar as of 25 January from around 2,000 as of 2011. This might limit the price Brookfield can command for the asset, cautioned the source.                                                                                                              

The fund also owns Brookfield’s participation in the Vespucio Norte Express highway in Chile, where the Canadian investor agreed on 11 January to sell a 33% stake in the asset to local investor Frontal Trust Infraestructura Alpha Fondo de Inversión.

Brookfield declined comment on the situation.

 

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