Ecopetrol submits a binding offer to acquire the Ministry of Finance and Public Credit's controlling stake in ISA

Rhea-AI Summary

Ecopetrol S.A. has submitted a binding offer to acquire a 51.4% stake in Interconexión Eléctrica S.A. (ISA) from Colombia’s Ministry of Finance. The offer was approved by the Board of Directors on July 30, 2021, and submitted the same day. Ecopetrol, a leading integrated oil and gas conglomerate in Latin America, is awaiting the Ministry's response and will inform the market accordingly. This acquisition could strengthen Ecopetrol's position in the energy sector, expanding its influence in regional electricity distribution.

Positive

• Acquisition of 51.4% stake in ISA could enhance Ecopetrol's market presence.
• Potential for increased revenue streams from electricity distribution.

Negative

• Integration challenges may arise from the acquisition.
• Dependency on the Ministry's response could lead to uncertainties.

BOGOTÁ, Colombia , Aug. 2, 2021 /PRNewswire/ -- Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that during the meeting held on Friday July 30, 2021, its Board of Directors authorized the Legal Representative of the Company to submit a binding offer to acquire the Ministry of Finance and Public Credit's 51.4% stake of the outstanding shares of Interconexión Eléctrica S.A. E.S.P - ISA. The binding offer was submitted that same day within the terms approved by the Board of Directors.

Ecopetrol is currently waiting for the response from the Ministry of Finance and Public Credit, which, once received, will be timely informed to the market.

Ecopetrol is the largest company in Colombia and one of the main integrated oil and gas conglomerates in Latin America, with more than 13,000 employees. It accounts for more than 60% of the hydrocarbon production in Colombia, and it owns the largest refineries and most of the country's oil-pipelines and multi-purpose pipelines network. It also participates in the commercialization of energy and in the distribution of gas. At the international level, Ecopetrol focuses on strategic basins on the American continent, with E&P operations in the United States (the Permian basin and the Gulf of Mexico), Brazil and Mexico. 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 (A) 
Lina María Contreras Mora
Phone: +571-234-5190 
Email: investors@ecopetrol.com.co 

Media Engagement (Colombia) 
Alexandra Santamaria Molano
Phone: + 571-234-4329 
Email: alexandra.santamaria@ecopetrol.com.co

 

View original content:https://www.prnewswire.com/news-releases/ecopetrol-submits-a-binding-offer-to-acquire-the-ministry-of-finance-and-public-credits-controlling-stake-in-isa-301345960.html

SOURCE Ecopetrol S.A.

FAQ

What is Ecopetrol's recent acquisition?

Ecopetrol submitted a binding offer to acquire a 51.4% stake in Interconexión Eléctrica S.A. (ISA) from the Colombian Ministry of Finance.

When was Ecopetrol's offer for ISA submitted?

The offer was submitted on July 30, 2021, following approval from the Board of Directors.

What impact could the acquisition of ISA have on Ecopetrol?

The acquisition could increase Ecopetrol's market presence and revenue from electricity distribution.

How does the acquisition align with Ecopetrol's business strategy?

This acquisition aligns with Ecopetrol's strategy to expand its operations beyond oil and gas into the energy sector.