Boyacá Development Promotion Institute (Ideboy) plans to sell its 13.3pc stake or 3.3mn shares of Colombian steelmaker Acerías Paz del Río. Ideboy is a regional development institute with an equity stake in the company.
Acerías Paz del Río is majority-owned by Brazil’s Votorantim holding company. Ideboy owns about 13.3pc of Acerías Paz del Río, while Votorantim owns 82.22pc shares of the steelmaker. But Ideboy does not have voting rights or a board seat, and thus cannot influence the company’s profit distributions. According to Ideboy’s estimates, the market value of the 13.3pc shares is around COP17,000-20,000mn ($4.43-5.21mn).
Ideboy plans to strengthen its working capital with the proceeds of the sale. The shares will be placed for 6-months and extended for a second 6-month period, if unsold in the first round.