A large utilities company based in Medellin, Colombia is in advanced talks of investing $1 billion in a Brazilian-based electric company, expanding its overall presence in Latin America, US news service Bloomberg reported on Wednesday.
According to a source from Bloomberg, the utilities company Empresas Publicas de Medellin (EPM), plans to buy approximately 30% of Transmissora Alianca de Energia Eletrica SA, a Brazilian electric company, as part of a $1 billion investment.
The EPM would purchase the stake from Fundo de Investimento em Participacoes Coliseu, a private Brazilian equity firm.
Coliseau has a joint partnership with Brazil’s largest power generator by market capitalization, Energetica de Minas Gerais (CEMIG).
The EPM and the involved parties did not confirm the talks to Bloomberg, although they responded to Bloomberg in an email that read, “As part of our growth strategy, the organization evaluates many investment options in Brazil as well as other Latin American countries.”
Earlier this year, EPM posted a $867 million profit for 2013.
MORE: Medellin utility company posts $867m profit
At the time, EPM President Juan Esteban Calle told Caracol Radio that the profits would help the firm progress into global telecom markets.
The EPM is an energy, gas, and water company that provides services for over 13 million people. Internationally, the EPM has businesses in Central America, the Caribbean, South America, Mexico, the US, and Spain, according to the EPM website.
