Colombian regulator OKs Grupo Aval's spinoff of BAC Holding

The Superintendency of Finance of Colombia has approved Grupo Aval Acciones y Valores SA's spinoff in favor of its shareholders, the shares of its indirect subsidiary BAC Holding International Corp., which Grupo Aval will receive as the result of the demerger and spinoff of 75% of BHI by Banco de Bogotá SA to its shareholders, including Aval, according to a company filing.

Additionally, Grupo Aval and Banco de Bogotá requested that their shares be suspended from trading on the Colombian Stock Exchange from March 22 to March 29, when the spinoffs will take place.

Shares of both Grupo Aval and Banco de Bogotá will resume trading March 30 upon completion of the above transactions.

"The transaction will strengthen Aval's and Banco de Bogota strategic focus on Colombia," Aval President Luis Carlos Sarmiento Gutierrez said in a call today. "As a result of the spin up and the deconsolidation of this investment in our numbers, we will simplify our corporate structure eliminate multijurisdictional complexities and increase our agility and flexibility to respond to the dynamics of the local markets in which we operate."