BAC Holding International and the Colombian Market: A Closer Look at the Split, Listing Delays, and Ownership Shifts
Today, BAC Holding International, also known as BHI, was anticipated to begin trading on the Colombian Stock Exchange. This arrangement followed the corporate split between Banco de Bogotá and Leasing Bogotá SA Panama, commonly referred to as LBP. The listing did not commence as planned, and trading was paused while a tender offer to the Financial Inspectorate of Colombia was being reviewed. In the afternoon, the project for a bank guarantee was submitted by Rendifin SA, a company controlled by Luis Carlos Sarmiento Angulo. He already holds a 3.6 percent stake in Grupo Aval and signaled intentions to increase his participation in BHI. The bid is reported to seek between five and fifteen percent of the issuer’s current shares. The shares, when issued, were expected to be ordinary with a reference price near 291 dollars, a face value around 263.9 dollars, and an implied equity value close to 306.5 dollars per share.
On March 16, Grupo Aval together with Banco de Bogotá formally requested the BVC to suspend trading of their shares. The decision was driven by the need to refine the division process and ensure a smooth transition for all parties involved. In response, the BVC issued operating instructions outlining the sequence of actions. The plan began with the separation of Banco de Bogotá from the Bogotá Beneficiary Company. At the same time, the separation between Grupo Aval and its beneficiary entity, Sociedad Beneficiaria Aval, was executed. Once these separations were completed, the rights holders would merge with BAC Holding International Corp, referred to as BHI, under the framework of the reorganized structure. The ultimate objective was to align ownership in the new configuration and prepare for the subsequent steps in the transaction, including the recapitalization and distribution procedures tied to the split assets.
As the registry processes advance, the commercial registry update will determine the entitlements of shareholders. When the exchanges and the public registry formalize the division of BanBogotá, any investor holding shares in the Bogotá Beneficiary Company would be entitled to an ordinary share in that entity. A parallel development was anticipated for Grupo Aval, with similar rights for its associated entities once the official records are updated. The BVC stressed that the reference prices for the split entities would be communicated by the issuer and were expected to reflect adjustments based on the initial pricing while the overall number of company shares remained constant. The exchange emphasized that price adjustments would be calculated to maintain fair value across the transaction and ensure consistent market pricing for the post-split entities.
Following the completion of the restructuring, ownership stakes would shift. Shareholders of Banco de Bogotá and Grupo Aval were projected to directly own a combined majority stake in Leasing Bogotá Panamá, with a 75 percent influence allocated to the combined entity and a 25 percent stake aligned with Banco de Bogotá. Leasing Bogotá Panamá would continue to hold the full control of its assets, including its relationship with BAC Credomatic, under the new corporate arrangement. These changes signaled a strategic realignment of ownership across the intertwined organizations, aiming to optimize capital structure and streamline governance across the reorganized group.
In this context, market participants watched closely as the process progressed. The unfolding steps included formal approvals, registry updates, and the orderly execution of the share splits and mergers. The outcome would determine how assets, rights, and obligations were distributed among the newly formed entities and how this would impact liquidity, investor confidence, and future capital movements within the Grupo Aval ecosystem and its associated subsidiaries. The overall objective appeared to be a coordinated transition that preserved the integrity of existing investments while enabling the new configuration to operate effectively within the Colombian financial market.
Note: The information summarized here reflects ongoing market developments and official actions taken by the participating institutions as they align their corporate structures with regulatory requirements and market expectations.