Empresa Electrica de Guatemala Being Sold

According to reports, the Spanish utility Iberdrola is in discussions to sell its shares in Empresa Electrica de Guatemala SA (EEGSA) to Colombian company Eléctrica de Medellín (EDM).

Tuesday, October 19, 2010

Iberdrola's decision would be related to the reduction of tariffs in over 50% approved by the National Energy Commission (CNEE) in June of 2008. In November 2009, Iberdrola sued Guatemala with an international arbitration proceeding for $ 672 million, questioning the reduction.

El Periódico de Guatemala reported that’s negotiations with the Colombian company, who already operates in the country, would be in an advanced stage and the due diligence process complete.

Iberdrola owns 39.4% of shares of EEGs, while the state owns 14%.

More on this topic

Panama Power: Companies Qualify for Share Tender

July 2013

The verification commission has concluded that all of the companies interested in buying the 51% stake in the electricity distributors are eligible to submit bids.

"The commissioners began evaluations on July 14, after the National Authority of Public Services (ASEP) received documentation from companies interested in the stake, including proposals from the existing concessionaires Gas Natural Fenosa and Elektra Noreste SA who wish to continue offering the service," reported Prensa.com.

Colombian Investments in Central America

January 2011

EPM Group bought to Ashmore Energy International electricity distribution company ENSA of Panama and DELSUR of El Salvador for $ 200 million.

The Corporate Group EPM (Empresas Públicas de Medellín) is dedicated to providing public services related to electricity, water, sanitation and telecommunications, through 12 subsidiaries. It is owned by the Municipality of Medellín, governed by Colombian commercial law.

EPM Buys Guatemalan Utility Company for $ 635 million

October 2010

Colombian Group EPM acquired 80% stake in Empresa Electrica de Guatemala (EEGSA).

Empresas Publicas de Medellin (EPM), leading provider of public services in Colombia, will expand its presence in Central America.

Sigloxxi.com reports, "The sale, according to EEGSA´s manager, Jorge Alonso, was decided by company shareholders, consisting of firms Iberdrola of Spain, Teco Energy and Electricity of Portugal, although the distributor was unaware of negotiation details.”

State of Guatemala Sued for $672 Million

December 2009

The lawsuit was filed by Iberdrola, main shareholder and operator of EEGSA (Empresa Eléctrica de Guatemala, 'Electric Company of Guatemala').

It is the largest in Guatemala's history, and has its root in lack of agreement regarding an energy distribution tax called 'VAD' (Valor Agregado de Distribución), which came into effect on August 2008.

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