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BANCOLOMBIA


Deal:
Bancolombia acquired Banco Agricola, the largest bank in El Salvador, through the purchase of the shares of the holding company Banagricola, S.A.

Date completed:
May, 2007.

Value:
US $900 million

Description:
Arias & Muñoz advised the controlling group of shareholders of Banagrícola, S.A., owner of Banco Agrícola, the largest bank in El Salvador, in the sale to Bancolombia, the largest Colombian financial institution, with operations in Colombia, Panamá, Cayman Islands, Puerto Rico and Miami. With the acquisition of Banagrícola, Bancolombia steps into the Central American market becoming the largest Colombian investment in the region.

Arias & Muñoz Role:
Arias & Muñoz acted as lead counsel for the controlling group of shareholders of Banagrícola, S.A. (Sellers).

Importance:
This deal represented the first “cross-border” tender offer in the region, launched over two countries (El Salvador and Panama), but structured as a single tender offer and, therefore, complying with requirements of two jurisdictions and making a precedent in the region.