SAO PAULO, June 23 Brazil's Companhia Energética de Minas Gerais, or Cemig, said on Monday it is backing off plans to bid for Colombia's third-biggest power generator, Isagen SA.
In a statement, Cemig said it would seek other opportunities for its consortium with Empresas Públicas de Medellín , another Colombian company, but they would not be bidding for Isagen as planned.
"Cemig could not develop the financial structure that would make it competitive in the bidding process and achieve the returns necessary for corporate approval," the company said.
The Colombian government is looking to sell its 57.6 percent in Isagen, valued at around $2.5 billion, but judicial authorities have ordered the suspension of the sale due to constitutional concerns.
Duke Energy Corp, China Haudian Corporation, Spain's Gas Natural, Empresa de Energia de Bogota and Generco have also expressed interest in Isagen. (Reporting by Anna Flavia Rochas; Writing by Brad Haynes; Editing by Lisa Shumaker)