Post by
kcac1 on Jun 06, 2024 4:07pm
Maybe we should be giving de Alba more credit
for increasing the value of Frontera, even though he has not promoted it. He increased the equity interest in the Port from 41.79% to 99.9%. Plus now adding the Port Pipeline. He also increased ownership interest in the ODL pipeline. With the current market cap just over$500mm U$, and no debt issues, with Frontera Colombia generating plenty of cash. How can there be any downside risk since each of the 4 assets could/should bring $500mm or far more?
Since you have both Citi and Goldman trying to broker deals? And Catalyst under pressure and a deadline to raise substantial cash for their 26 LP Fund V bag holders?
From 2016 Annual Report:
"Port Investment_- The Company currently holds a 41.79% equity interest in Pacific Infrastructure, the assets of which are strategic to the Company’s plans to substantially increase its oil production and export sales from Colombia in the midterm and will reduce the current dependence on Coveas, the sole oil export terminal on the Colombian Caribbean coast. With the Company’s investment in Pacific Infrastructure, the Company has secured alternative storage and port capacity for both its imports and exports. In 2013, IFC invested U.S.$150 million in Pacific Infrastructure and the Company may, under certain limited circumstances, including after a period of five years in the event that Pacific Infrastructure has not made an initial public offering of its shares, be required to repurchase such shares from IFC. IFC’s investment helped develop Pacific Infrastructure’s key assets, which include the Puerto Baha port in Cartagena, Colombia.
This asset is expected to reduce both bottlenecks and the dependence on a single export terminal and facilitate increased access to international markets. Puerto Baha Puerto Baha is a greenfield liquids import-export terminal with a 2.4 MMbbl storage and cargo handling facility located on the bay of Cartagena, one of the largest trade hubs in Latin America. On October 4, 2013, Sociedad Puerto Baha (a wholly-owned subsidiary of Pacific Infrastructure) entered into a credit agreement with Itau BBA Colombia S.A. Corporacin Financiera, among others, for a debt facility of up to U.S.$370 million for the construction of Puerto Baha (the “Port Credit Agreement”)"