Bancolombia Completes Purchase of Guatemalan Bank

In Guatemala, the business group of South American origin acquired 40% of the shares still owned by BAM Financial Corporation, and consolidated 100% of the assets of the Agromercantil Holding Group.

Tuesday, March 3, 2020

Directors of Bancolombia reported that the company will begin the process of authorizations to regulatory bodies and that in the coming days will provide details on the price of shares, according to the contractual rules between the parties who closed the negotiation.

See "Loan Portfolio Increased Less Than Expected"

Regarding the purchase of the total shares, a spokesperson for Institutional Communication of Bancolombia, explained to that "... This option allows Grupo Bancolombia to consolidate a 100% participation of the shares of Grupo Agromercantil Holding (GAH), owner of the financial conglomerate Agromercantil de Guatemala, integrated by Banco Agromercantil de Guatemala (BAM), among others."

The spokesman from Medellín answered the questions, adding that "... this progress and our participation in Guatemala will allow us -Bancolombia- to reinforce the path we started in 2013 and which has led us to boost our capacity to generate businesses that bring prosperity to different corners of the country."

According to the institution's internal figures, BAM managed to increase its loan portfolio by 8%, three points above the average, and in total it has 640,000 clients.

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Grupo Bancolombia has agreed to acquire 40% of the ordinary shares of Grupo Financiero Agromercantil, with the possibility of acquiring a controlling interest in the medium term.

A statement of Grupo Bancolombia reads:

Grupo Bancolombia acquires 40% of Grupo Financiero Agromercantil of Guatemala – BAM - and strengthens its presence in Central America.