San Antonio Unloads Colombian Operations

Estrella International Energy has agreed to buy 100% of San Antonio International’s Colombian operations for $122m cash, it says. The Argentina-based Canadian-listed buyer claims the deal will make it Colombia’s largest oil and gas services provider. Estrella plans to inject $31m into the company to repay indebtedness for working capital. Financing is to come through a $97m loan from Estrella controlling shareholder Ringo Holding, an entity controlled by Southern Cross Group. Ringo also agrees to buy CAD130m ($128m) in preferred stock. The buyer is also planning to take out a $50m-$58m seven-year Colombian bank loan, or, failing that, an additional $56m loan from Ringo. The transaction is expected to close August 1. San Antonio, controlled by Brazil’s GP Investimentos, continues to operate in Brazil, Argentina, Bolivia, Peru, Ecuador, and Mexico.