- EPM, through its new subsidiary Afinia, will provide electric utility services to 1.5 million customers (6 million users) in the departments of Bolívar, Cesar, Córdoba, Sucre and 13 municipalities of Magdalena.
- In the next five years Afinia will execute an investment plan of nearly COP 4.0 tn (~USD 1 bn) to ensure the continuity of high quality and reliable electric utility services for the designated market. Over the next 10 years, the total investments will reach COP 8.0 tn (~USD 2 bn).
Bogotá, October 01, 2020. Inverlink, a leading independent investment bank based in Colombia, acted as exclusive financial advisor for EPM, in the acquisition of CaribeMar, now Afinia, which will provide energy utility services to 1.5 million customers in the departments of Bolívar, Cesar, Córdoba, Sucre and 13 municipalities of Magdalena. Likewise, the Consorcio Energía de la Costa, with its firm ‘Aire’, will oversee the Caribe Sol operation, with 1.2 million customers in the departments of Atlántico, Magdalena and La Guajira.
Afinia will be the new company in charge of the electrical utility services, serving a population of 6 million people in 127 municipalities, in the departments of Bolívar, Cesar, Córdoba, Sucre and part of Magdalena. Afinia is expected to invest COP 4.0 tn (~USD 1 bn) during the first five years, and a total of COP 8.0 tn (~USD 2 bn) over the next ten years. These significant investments will ensure the continuity in the provision of reliable and high-quality electricity utility services on the Caribbean region. This will further provide a definitive solution to decade long regional difficulties and result in greater employment opportunities across the country.
“After more than a year of detailed and rigorous analysis and evaluation of the business, which involved an interdisciplinary team made up of over 120 EPM employees and their advisors, we are reaching the successful closing of a key transaction for the development and competitiveness of Colombia. This transaction will enable gradual and continuous improvement of the quality and coverage of the service in the Caribbean region of Colombia, in accordance with the proven high standards of EPM” assures Nicolás Gómez, Director of Inverlink.
The Transaction makes EPM the largest energy distribution and commercialization company in Colombia, with a market share of ~ 35%.
“Inverlink is very proud to have supported EPM in this transaction. We are pleased to know that our work, professionalism, and execution capacity have contributed to reaching a long-term solution to this critical problem associated with electricity utility service in this important region of Colombia. We are convinced that EPM is ideally positioned to face this great challenge, given its expertise and successful track record, , and are confident that the region will be able to count on a reliable and high quality electricity utility service in the near future ”, stated Mauricio Saldarriaga, Managing Partner of Inverlink.
With 35 years of experience in the market, INVERLINK was the first investment bank to be founded in Colombia and is the leading independent firm with presence in the areas of M&A, structured and corporate finance. The team is one of the largest locally, comprised of highly qualified and seasoned professionals with both local and international experience. INVERLINK has executed over 200 transactions in more than 10 countries throughout Latin America worth over US$25 billion.
About Grupo EPM:
Grupo EPM is a multi-latino group with a presence in six countries: Colombia, Chile, El Salvador, Guatemala, Mexico and Panama. The Company, which serves more than 20 million people, without Afinia’s 1.5 million clients and 6 million users, provides public utilities (water supply, wastewater management, energy generation, distribution, commercialization and transmission services; commercialization of natural gas, purification of seawater and solid waste management services)