A pig iron plant 30 km north of Bogotá, idle since 2015 and sold off in a judicial liquidation. The thesis was vertical integration: mine the iron ore and coal, make the met coke, and smelt the pig iron, all on one site.
The asset package held two blast furnaces (one running, the second built to 80%, each rated at 10,600 MT per month), 140,000 m² of land with offices, laboratories and warehouses, approved environmental licenses, and three iron ore concessions carrying 11.8 million MT of proven reserves. The plant sat inside a 150 km radius of Colombia's main pig iron buyers, in a market that imported most of its pig iron.
The Superintendencia de Sociedades had taken control and was selling the assets under Ley 1116, Colombia's insolvency statute, so the process and the asset base are public record. The capital plan was USD 80 million: USD 33 million to buy the assets, and the rest to finish the second furnace, add a sintering line, build a 5 MW thermoelectric plant, develop the mine infrastructure, and buy a coal mine and build a met coke plant sized at 300,000 MT per year. Financing was structured as senior debt held in an escrow trust, with the acquired assets pledged as the lenders' guarantee, alongside equity and a five-year forward production contract as alternatives.
I led the financial structuring, built the valuation model, and prepared the package that went to institutional and strategic investors. The team secured full access to the target's data in Colombia and worked directly with the court-appointed liquidator.
Outcome: the deal did not close. Investor conversations were underway when COVID-19 halted them in early 2020, and the platform was wound down. What follows is the valuation model, rebuilt from the project's source documents.