Isagen SA

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In June 2007, Isagen SA, Colombia’s state owned electricity generation company, completed the sale of 19.9% of its shares in an initial public offering on the local Bogata stock exchange. Isagen SA included generation assets throughout Colombia with an installed capacity of: 2132 MW. Hydroelectric facilities comprised the majority of Isagen’s generation capacity (1832 MW) and included five plants while thermoelectric power totaled 300 MW and included one power plant. The plants were hydro plants San Carlos (1240 MW), Jaguas (170 MW), Calderas (26 MW) y Miel I (396 MW), y thermal power plant Termocentro (300 MW). Proceeds from the share sale were slated for social projects. Isagen sold its output in the wholesale energy market and through long-term bilateral purchase agreements. The auction for the 19.9% was announced by the government of Colombia in late 2006. In early May 2007, the first share sale for 15.85% was completed for 488 billion Colombian Pesos. On June 2, the second and final share sale for 3.37% of the capital stock was completed for 104 billion Colombian pesos. The 2.44 million shares for both rounds were priced at COP1,130 each (US $0.57). The total amount sold amounted to 592 billion pesos (US $284.8 million). Pension funds and former employees were given priority in the sale which was oversubscribed five times. After the sale, the federal government's stake in Isagen was 57.78% while Empresas Publicas de Medellin (EPM) kept its 13% stake. As of December 2013, Isagen was nearly completing the construction of the 820-MW hydro power plant named Sogamoso (construction works commenced in 2011). The project envisaged an investment of US$ 1.4 billion, and commercial operations were expected to commence by May 2014. In January 2016, the Canadian consortium Brookfield Asset Management Inc. acquired the Colombian government's 57.6% stake in Isagen. Brookfield won a public tender process by offering US$ 2 billion (Pesos 6.486 trillion). Three prospective bidders – Brookfield, Colbun and GDF Suez – were prequalified to bid by early 2015. In December 2015, the minimum price per share was raised from $3.399 (Pesos) to $4.130 (Pesos), valuing the 57.6% stake on offer at US$2 billion, and Brookfield consortium was the only potential bidder that remained in the process.