Colombiana de Inversiones eyes energy

By Javier Mozzo

MEDELLIN (Reuters) - Diverse Colombian investment fund Colombiana de Inversiones said on Wednesday it will focus its portfolio on energy generation with a future eye on holding 20 percent of the local electricity generation market.

Colombiana de Inversiones CLI.CN President Juan Guillermo Londono told the Reuters Latin America Investment Summit he sees 80 percent of investment in energy and is preparing $1.2 billion portfolios in hotel, financing and paper firms for sale.

"It is a complete turnaround," Londono said from the company's headquarters in Medellin. "In the medium term we are going to be a company that will be focused around 80 percent in the world of energy."

Colombiana de Inversiones entered the energy market at the end of last year with purchase of Termoflores for $320 million and expects to close the takeover of another generation firm, Merielectrica, this month for $432 million.

Both companies will give Colombiana de Inversiones a generation capacity of 800 megawatts, Londono said.

"On this base we want to construct a diversified portfolio with different sources of energy generation, whether it is gas, coal, bio-energies -- that is where we are going to be focused," he said.

Depending on the auctions for energy generation that the government will carry out between May and June, Londono forecast the company's investments in the sector over the next three to four years will be around $1.5 billion.

Colombiana de Invesiones' portfolio consists of companies such as Suramericana de Inversiones CSS.CN, the country's largest holding conglomerate, Grupo Empresarial Antioqueno (GEA), Colombiana Kimberly Colpapel, the Colombia Stock Exchange BVC.CN and various hotels.  Continued...