Telecommunications Company of Bogota (ETB) of Colombia would be put up for sale (85% of its state shares) to private capitals in order to raise USD 700 million, estimated figure for which it would be valued, local daily El Tiempo reported.
The Mayor of Bogota, capital of Colombia, Enrique Peñalosa, presented the proposed privatization to the legislative Council of the city within the framework of a Development Plan that seeks to build 30 schools, four hospitals, a center of command and control, two sports centers and eight kindergartens.
“ETB will never be able to compete at the level of big corporations. What is raised from the sale would go to investment. Where is this money spent better, in the company or in hospitals and roads? For us, the answer is clear: the returns of investment on social plans and infrastructure are higher than what the company would value if it had been better managed”, said the President of ETB, Jorge Castellanos, to the newspaper.
However, the measure is resisted from the opposition. “It is not true that the company is at loss. The share value has increased. What the president should do is to fully exploit its new capabilities”, said Councilman Holman Morris. In July 2011, a sale attempt was thwarted by decision of the Council.
In January 2016, when rumors of a possible sale started, the CEO of the telco Millicom, Mauricio Ramos, told local magazine Portfolio: “When given the opportunity and reviewing the conditions, Tigo-Une would have an interest to participate”.