Ecopetrol’s US$3.67 Billion Acquisition of 51.41% Stake in Interconexión Eléctrica

Posse Herrera Ruiz acted as Colombian legal counsel to the Financiera de Desarrollo Nacional and the Colombian Ministry of Finance. Claro & Cía, TozziniFreire Advogados, Payet, Rey, Cauvi, Pérez Abogados also advised the sellers, while Baker & McKenzie advised Ecopetrol on the deal.

Financiera de Desarrollo Nacional and the Colombian Ministry of Finance executed the sale of its 51.41% stake in Interconexio?n Ele?ctrica S.A. E.S.P. (ISA) to Ecopetrol S.A. in a COP$14.2 trillion deal (US$ 3.67 billion approx.).

The sale of ISA, one of the largest transactions in the history of Colombia in terms of value, constitutes a major step in the Colombian Government’s strategy of improvement of its shareholding portfolio, and will help the Government to finance its public investment programs in line with the Government’s Plan of Economic Reactivation.

With this acquisition, Ecopetrol is now the majority shareholder of ISA.

Ecopetrol performs crude oil and natural gas exploration, production, refining, and transportation. The largest company in Colombia (where it accounts for 60% of national production and is one of the world’s 40 largest oil companies), Ecopetrol has two large refineries (Barrancabermeja and Cartagena) strategically located to supply the domestic market and to export oil and oil products to the southern US. Ecopetrol explores for oil and gas across Colombia, and is expanding internationally through exploration partnerships in Brazil, Peru, and the US Gulf of Mexico. 

Colombian state-owned holding company Interconexión Eléctrica S.A. E.S.P. (ISA) operates in Latin America’s power, telecom and ICT, and highway concession sectors through its 58 subsidiaries and affiliates. ISA operates a high-voltage transmission network of some 46.000km, deployed throughout Colombia, Peru, Bolivia, Brazil, and Chile, and holds a stake in Empresa Propietaria de la Red (EPR) which operates Central America’s interconnection of power grids. 

In-house Counsel for the Ministry of Finance included Lawyers Ángela Patricia Parra, María Camila Pérez, and Oswaldo Andrés González.

In-house Counsel for Financiera de Desarrollo Nacional S.A. – FDN included Juana Beltrán and María Juliana Pérez.

The Posse Herrera Ruiz’ team included Jaime Herrera and Oscar Tutasaura, Juan Guillermo Ruiz and Jaime Gómez, with Mariana Posse, Susana Gómez, Isabel Torres, Diana Rueda, Daniel Delgado and Adriana Cabal.

The Claro & Cía’s team included Jorge Martín, Jorge Carraha, Rafael Cruzat and Carmen Luz Chavarría.

The TozziniFreire Advogados’ team included Leonardo Miranda, Ana Carolina Katlauskas, Fabiola Cavalcanti, Stefania Gomes and Vivian Min Yee.

The Payet, Rey, Cauvi, Pérez Abogados’ team included Juan Antonio Egüéz, José Luis Vargas-Machuca, Mayra Aguirre.

Inhouse Counsel for Ecopetrol were María Paula Camacho, Diana Silva and Andrés Ramón Rodríguez.

The Baker & McKenzie’s team included Jaime Trujillo and Andres Crump (Picture), Natalia Ponce de León and Juliana Tobón.

Involved fees earner: Andrés Crump – Baker McKenzie; Natalia Ponce de León – Baker McKenzie; Juliana Tobon – Baker McKenzie; Jaime Trujillo Caicedo – Baker McKenzie; Jorge Carraha – Claro y Cia; Carmen Luz Chavarría – Claro y Cia; Rafael Cruzat – Claro y Cia; Jorge Martín – Claro y Cia; Ana Carolina Katlauskas Calil – Mattos Filho Veiga Filho Marrey Jr & Quiroga; José Luis Vargas-Machuca – Miranda & Amado Abogados; Mayra Aguirre – Payet, Rey, Cauvi, Pérez, Mur; Juan Antonio Egüéz – Payet, Rey, Cauvi, Pérez, Mur; Adriana Cabal – Posse Herrera Ruiz; Daniel Delgado – Posse Herrera Ruiz; Susana Gómez – Posse Herrera Ruiz; Jaime Enrique Gómez – Posse Herrera Ruiz; Jaime Herrera – Posse Herrera Ruiz; Mariana Posse – Posse Herrera Ruiz; Diana Rueda – Posse Herrera Ruiz; Juan Guillermo Ruiz – Posse Herrera Ruiz; Isabel Torres – Posse Herrera Ruiz; Oscar Tutasaura – Posse Herrera Ruiz; Fabiola Augusta Cavalcanti – Tozzini Freire ; Leonardo Miranda – Tozzini Freire ;

Law Firms: Baker McKenzie; Claro y Cia; Mattos Filho Veiga Filho Marrey Jr & Quiroga; Miranda & Amado Abogados; Payet, Rey, Cauvi, Pérez, Mur; Posse Herrera Ruiz; Tozzini Freire ;

Clients: Colombian Ministry of Finance and Public Credit; Ecopetrol SA; Financiera de Desarrollo Nacional (FDN);