Ecopetrol informs that the Ministry of Finance and Public Credit accepted the non-binding offer submitted on January 27 to acquire ISA stock

Rhea-AI Summary

Ecopetrol confirms it has received a written communication from Colombia's Ministry of Finance regarding its bid for 51.4% of ISA's shares. Signed exclusivity contract requires Ecopetrol to finalize the bid submitted on January 27, 2021, within the first half of 2021. The Ministry reserves the right to adjust the price based on appraisal and due diligence outcomes. As Colombia's largest firm, Ecopetrol significantly influences the region's oil sector and is expanding into bio-fuels, while facing various market and regulatory conditions that could impact its future performance.

Positive

• Exclusive contract signed with the Ministry of Finance for a significant acquisition.
• Potential expansion of operations with the acquisition of ISA.

Negative

• Price adjustments may occur based on appraisal results, impacting financial planning.
• Future performance is subject to market volatility and regulatory changes.

BOGOTA, Colombia, Feb. 8, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC), pursuant to the provisions set forth in Article 5.2.4.1.6 - Decree 2555/2010, does hereby confirm the information published in several media outlets that last February 5, 2021, received a written communication issued by the Ministry of Finance and Public Credit, whom, among other things, announced that:

• They agree to sign an exclusivity contract with Ecopetrol pursuant to which, during the first half of 2021, Ecopetrol will be required to consummate the bid it submitted on January 27, 2021 to acquire 51.4% of the outstanding shares of ISA under an Inter-Administrative Contract.
• They reserve the right to propose adjustments to the price range subject to the results of the appraisal and due diligence processes that it undertakes in parallel to Ecopetrol.

Ecopetrol is Colombia's largest firm and is an integrated oil company that is among the 50 largest in the world and the four largest in Latin America. In addition to Colombia, where it generates over 60% of the country's production, it is active in exploration and production in Brazil, Peru and the United States (Gulf of Mexico). Ecopetrol operates the largest refinery in Colombia, most of the country's oil-pipeline and polyduct network and is significantly increasing its share of bio-fuels. This press release contains statements relating to business prospects, estimates of operating and financial results, and Ecopetrol's growth prospects. All are projections, and therefore are based solely on management's expectations of the company's future and its continuous access to capital to finance its sales plan. Achieving these estimates in the future depends on its performance under given market conditions, regulations, competition, the performance of the Colombian economy and industry, and other factors; therefore, they are subject to change without prior notice.

For further details, please contact:

Head of Capital Markets
Juan Pablo Crane
Phone: +571-234-5190
Email: investors@ecopetrol.com.co

Media Engagement (Colombia)
Jorge Mauricio Tellez
Phone: + 571-234-4329
Email: mauricio.tellez@ecopetrol.com.co

View original content:http://www.prnewswire.com/news-releases/ecopetrol-informs-that-the-ministry-of-finance-and-public-credit-accepted-the-non-binding-offer-submitted-on-january-27-to-acquire-isa-stock-301223834.html

SOURCE Ecopetrol S.A.

FAQ

What acquisition did Ecopetrol announce on February 8, 2021?

Ecopetrol announced its bid to acquire 51.4% of ISA's outstanding shares, confirmed by Colombia's Ministry of Finance.

What is the timeline for Ecopetrol's acquisition of ISA?

Ecopetrol must complete the acquisition by the first half of 2021 as per the exclusivity contract.

What factors could affect Ecopetrol's acquisition bid for ISA?

The bid's financial aspects may change due to appraisals and due diligence, as well as market and regulatory conditions.

How will the ISA acquisition impact Ecopetrol's business?

The acquisition could enhance Ecopetrol's market position and operational reach, especially in the bio-fuels sector.