The board of Colombia’s largest cement maker, Cementos Argos SA, authorised the company’s management to hire the investment banking unit of Bancolombia SA (CIB), the country’s largest bank, and Credit Suisse (CS) to evaluate the sale of its coal assets, it said Thursday in a filing to the stock and bond regulator.
The company’s board decided to hire the two banks "to evaluate the convenience to sell or not some of the assets related to the coal industry," the statement said.
It added that the company will keep the coal production businesses that allow the supply of its coal-fired power generation plants to keep its energy self-sufficiency.
Bancolombia and Credit Suisse will also evaluate the worth of the assets; the structuring of the sale; and they would seek potential buyers and advise a possible transaction, the filing added.
Cementos Argos, which is controlled by the holding company Inversiones Argos, Wednesday reported its net profit rose 425% in the first quarter to $42 million thanks to higher sales in Colombia.