Philippi Prietocarrizosa Ferrero DU & Uría (Colombia) has helped Canada’s Brookfield Asset Management acquire an additional 26.2 per cent stake in recently privatised Colombian power company Isagen for 2.9 billion Colombian pesos (US$967 million).
Brookfield completed its mandatory tender for the stake held by private shareholders on 13 May. Its Colombian subsidiary, BRE Colombia Investments, retained lawyers from the PPU M&A team that worked on the privatisation of Isagen earlier this year. It also sought advice from the firm’s capital markets practice.
Brookfield is obliged under the terms of its contract to acquire 100 per cent of Isagen before the end of July.
The outstanding shares are largely owned by Empresa de Energía de Bogotá and Empresas Públicas de Medellín. Both companies are state-owned and need approval from their respective municipalities before Brookfield can launch its final mandatory tender for their stakes.
The privatisation of Isagen back in January was controversial. Opponents fear the deal will increase energy prices and lead to mass lay-offs. Some also accuse the government of underselling the company.
Conversely, the Santos administration argues the sale will raise essential funds for the country’s underdeveloped infrastructure, which is undergoing a US$25 billion upgrade as part of a massive public private partnership programme.
Counsel to BRE Colombia Investments
Philippi Prietocarrizosa Ferrero DU & Uría (Colombia)
Partners Juan Carlos Rocha and Claudia Barrero, and associate Luz María Mercado