EEB closes acquisition of 31.92% of TGI shares
02 July 2014
- EEB closed today the acquisition of Transportadora de Gas Internacional S.A.-TGI’s shares, amounting to USD 880 million, which had been announced to the market last 4 of April 2014.
- EEB, by means of the recent incorporation of a Special Purpose Vehicle Transportadora de Gas Iberoamericana S.L, acquired the company Inversiones en Energia Latino America Holdings, S.L.U., a company which owned 31.92% of TGI shares.
- With this acquisition, EEB increases its shareholding structure in TGI up to a total of 99.97%.
Bogotá D.C., 2nd July 2014. -On the 2nd of July 2014, Empresa de Energía de Bogotá S.A. E.S.P (EEB) closed the acquisition of 31.92% of Transportadora de Gas Internacional (TGI) shares by means of acquiring a Special Purpose Vehicle Inversiones en Energia Latino America Holdings, S.L.U., IELAH, residing in Spain, at the head of which, The Rohatyn Group (former CVCI) maintained its investment in TGI.
To that extent, on 26 of June 2014, EEB capitalized the company Transportadora de Gas Iberoamericana S.L, -TGISL in USD 264 million. This company was incorporated in Spain by EEB as a vehicle for this transaction in accordance to the financial plan announced last April. In addition to this capital contribution, there are USD 616 million in short-term intercompany loans obtained by TGISL to complete the total value of the transaction, which amounts to USD 880 million. These intercompany loans will be replaced in the short-term by a syndicated loan with international banks. Accordingly, by means of this special purpose vehicle TGISL, EEB closes the acquisition of 31.92% of TGI shares.
In that regard, Sandra Fonseca, CEO of EEB stated:“TGI is deemed as a very interesting company for the Group, having high growth potential in the Americas. Its recent network expansion along Colombia, together with the stability of its revenues and the type of AAA clients with which it works, will undoubtedly provide us with a competitive advantage to the group”.
Juan Pablo Pallordet, Managing Director of The Rohatyn Group stated:“We are very proud of TGI and the company that we developed with EEB. The objective to significantly increase TGI’s capacity, the reason behind our investment, was successfully accomplished and we wish TGI, EEB and its administration and management team great success in this new expansion stage”.
TGI is the largest Natural Gas transportation company in the country with a 47.6% market share and a gas pipeline infrastructure of 3,957 kilometers. TGI serves the most populated areas in Colombia such as Bogotá, Medellin, Bucaramanga, Eje Cafetero and the Piedemonte LLanero.
EEB is the holding of Grupo Energía de Bogotá, multinational in the energy sector which participates in the entire energy chain from the generation to the distribution of electricity, and the transportation and distribution of natural gas through its controlled and non-controlled companies.
About Grupo Energía de Bogotá
Grupo Energia de Bogota is the leading corporation in the Colombian power sector. Through EEB it transports electricity to the most significant markets in terms of demand and size in the country and participates in the distribution of electricity through Empresa de Energía de Cundinamarca – EEC. It controls the largest natural gas carrier in Colombia, TGI S.A. In Peru, its company CONTUGAS has a 30-year concession for the transportation and distribution of natural gas in the Ica Department, likewise with its company CALIDDA distributes natural gas in the regions of Lima and Callao. In that same country, together with ISA, it holds stocks in REP S.A. and TRANSMANTARO S.A., which operate 63% of the electricity transmission system in Peru. In 2010, it established TRECSA - Transportadora de Centroamérica S.A.- in charge of building the most important infrastructure Project in Guatemala and will render electricity transmission services as of 2014. Furthermore, it holds an investment portfolio in important companies in the electric power sector, in which the following stand out, CODENSA S.A., EMGESA S.A., GAS NATURAL S.A. and Electrificadora del Meta - EMSA and to a lesser extent ISA and ISAGEN.
About The Rohatyn Group
Founded in 2002 by Nicolas Rohatyn, The Rohatyn Group (“TRG”) is an investment fund manager focusing exclusively in emerging markets in three main business lines, namely private equity funds, variable income funds and fixed income funds. To date, TRG and its affiliates manage private equity funds amounting to approximately USD 6 billion. TRG has over 16 offices worldwide and over 120 employees. TRG is present in New York, Singapore, Mumbai, New Delhi, Hong Kong, London, Buenos Aires, Lima, Mexico City, Sao Paulo, Montevideo, Kuala Lumpur, Jakarta, Bangkok, Shanghai and Madrid. For more information, visit, www.rohatyngroup.com.