Photo: EPM
The Medellín City Council took a crucial step in the process for the sale of EPM’s shares in UNE EPM Telecomunicaciones SA (UNE) and Inversiones Telco SAS (Invertelco). This Saturday, August 17, 2024, the First Commission of the Council approved in the first debate the Agreement Project No. 012, which requests authorization to proceed with the sale of EPM’s shareholding in these companies.
Approval was achieved with six votes in favor and one against, indicating majority, although not unanimous, support for the proposal.
With 6 votes in favor and one against, the First Commission approved the Draft Agreement 12 of 2024, which seeks to sell EPM’s shares in UNE. The initiative goes to the second debate that will take place next Wednesday, August 21, to be analyzed by the plenary session of the… pic.twitter.com/WxGnJVSqA2
— Medellin City Council (@ConcejoMedellin) August 17, 2024
The project, which has generated an intense debate in the city, will now go to a second debate in the plenary session of the Medellín City Council, where all councilors are expected to be able to express their vote. The final vote will be decisive in determining whether the municipal administration will be able to go ahead with the sale plan, which has been defended by the general manager of EPM, John Maya Salazar.
Maya Salazar, in her speech during the session of the First Commission, explained the main reasons that justify the request for alienation. Among them, she highlighted the need to reduce the risk of future capitalizations, recalling that in 2023 EPM had to contribute 300 billion pesos to cover UNE’s capital needs. According to Maya, continuing to invest in a sector as competitive as telecommunications, with its high rate of technological obsolescence, represents a risk that the company cannot continue to assume without direct control.
In addition, the importance of optimizing the use of EPM resources was stressed, directing them towards activities where the company has effective control and can guarantee greater profitability.
According to proponents of the sale, such a move would allow EPM to focus on its core mission and ensure its long-term financial stability.
Draft Agreement No. 012 also takes into account the public assets protection clause, which expires in December 2026. This clause gives EPM and Millicom, its partner in UNE, the possibility of jointly offering 100% of their shares to the general public, an opportunity that could disappear if action is not taken promptly.
Despite initial approval, the proposal has met with resistance. Some councillors and representatives have expressed concern about the sale of a strategic asset for the city, arguing that EPM’s shares in UNE should remain under public control. The previous administration had already presented a similar proposal, which was rejected on several occasions by the Council.
The second debate will be crucial not only for the administration of Medellín, but also for the future of EPM and the city.
2024-08-18 01:48:58
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