Company News Mar 15, 2021 4:05 PM
Grupo Energía Bogotá (GEB) announced its corporate update strategy 2021-2030.
GEB’s Juan Ortega explained that the company will be focused on energy transition and sustainability, Valora Analitik said.
The company plans to focus its portfolio on four points: transmission for tomorrow, gas for the future, Bogotá Smart and sustainable generation.
Ortega said that the company will maintain its focus on its gas and power transmission businesses.
“We will make inorganic growth decisions and divest in certain regions that do not have that potential for transmission of energy and gas,” Ortega said.
GEB seeks efficiency with less heavy and expensive infrastructures, reducing costs of transmission structures. The company will continue with the strategy of drastic reduction of unnecessary expenses.
The company sees a development opportunity in unconventional renewable energy sources, with a potential of 16 million kilometers of transmission lines.
In addition, Ortega said that GEB made an offer for ISA, with the backing of 12 banks and four consortiums.
“We have the financial capacity for the process, and we are willing to do so. We have the credit support, the Board of Directors and the will, with the corporate governance to make good plans together. We are motivated and available,” Ortega highlighted.
However, the expert said that the company is analyzing other investment alternatives, because “we are capable of growing and generating enormous value.”
Bottom-Line: GEB is positioned as a strong candidate to acquire ISA. However, the government only wants to develop this transaction with Ecopetrol (NYSE: EC) because only in this way it can retain a significant dividend flow from ISA (as well as divest part of Ecopetrol).
Although if GEB paid the discounted value of the future dividend flow today…