Ecopetrol reports the extension of the exclusivity period in connection with the potential acquisition of 51.4% stake in Interconexión Eléctrica S.A. – ISA and gives an update on the financing sources
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Ecopetrol reports the extension of the exclusivity period in connection with the potential acquisition of 51.4% stake in Interconexión Eléctrica S.A. – ISA and gives an update on the financing sources
Jun 23, 2021
Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) informs that the Exclusivity Agreement signed with the Ministry of Finance and Public Credit (“MHCP”) on February 12, in connection with Ecopetrol’s potential acquisition of MHCP’s 51.4% stake in Interconexión Eléctrica S.A. (“ISA”), has been extended until August 31, 2021. The exclusivity agreement provides the framework through which the negotiation process and due diligence activities for the potential acquisition have been ongoing.
Moreover, Ecopetrol has informed the MHCP of its decision of not conditioning the closing of ISA’s acquisition to an equity offering. This decision relies on the favorable evolution of the financial situation of Ecopetrol Group, which provides the flexibility to achieve the closing of the ISA transaction through a credit facility with international banks, and aligned with the leverage parameters established in the Company's business plan. The disbursement of such credit facility would be subject to the closing of the ISA transaction.
Notwithstanding the above, the Company will continue working on structural financing initiatives for the energy transition strategy, such as an equity issuance and/or the execution of medium and long-term debt transactions, under favorable market conditions.
Bogotá D.C., June 23, 2021
