The board of the Colombian state-owned telco Empresa Telecomunicaciones de Bogota (ETB) has recommended the sale of the company, according to Reuters.
The report yesterday said that ETB’s board sent a message to the state financial regulator, the…
The board of the Colombian state-owned telco Empresa Telecomunicaciones de Bogota (ETB) has recommended the sale of the company, according to Reuters.
The report yesterday said that ETB’s board sent a message to the state financial regulator, the Superintendencia Financiero, on Tuesday night to recommend the sale after the company had failed to attract any strategic partners.
The Bogota municipal government owns an 86.6% stake in ETB. The company has almost a complete monopoly on broadband and fixed-lines in the Colombian capital, but it reported an 83% drop in year-on-year profits in August, a fall from Ps244bn (US$128.4m) in 2009 to Ps41.6bn (US$21.9m).
The company has been looking to attract a partner since 2008, but ended the process in September after its deadline passed without any bids being made. Telmex, Telefonica and Oi were all reported to be interested.
Potential suitors were put off by allegations that the mayor’s office, telecoms union and city council were using ETB as a personal source of funding.
According to the Reuters report, the company’s president, Fernando Carrizosa, estimated the company’s value at between Ps 2bn and Ps 2.4bn (US$1.05m-US$1.26m).
