As Featured in Las2orillas: “The Indian Entrepreneur Making a Bold Move to Take Over Mineros, One of the Nation’s Leading Gold Miners”

Vikram Sodhi acquired shares from the Pacheco family of Colpatria and, with a superior per-share offer, seeks to outmaneuver the Moreno Echavarría family in the competition for the mining company.

Sun Valley Investments, led by its CEO and partner, the Indian-born entrepreneur and neuroscientist Vikram Sodhi— a former investment banker who entered the Colombian market driven by the government’s promotion of foreign investment in the mining and energy sector during Alvaro Uribe’s presidency— has secured control of Mineros S.A. Following two Public Tender Offers (OPA), a Counter-Tender Offer, and an Improved Offer, it appears increasingly likely that Sodhi will attain a majority stake in the company.

Mineros is a Medellín-based gold mining company that has been operating for nearly 50 years, with mines in the Bajo Cauca region of Antioquia along the banks of the Nechí River. It has also expanded into underground mining in the municipality of Zaragoza, as well as two underground mines in Nicaragua through Hemco.

Sun Valley Investments, a private investment firm focused on the metals and mining industry, headquartered in Switzerland, became the largest shareholder of Mineros in March 2024 after acquiring a 22.5% stake from the Pacheco family’s Grupo Colpatria. Eduardo Pacheco Cortés remains Chairman of the Board and retains a personal stake in the company.

In May 2024, Sun Valley increased its stake by 2.49% by purchasing shares from Banderato Colombia, a company owned by Mercantil Colpatria, bringing its total ownership to 24.99% of Mineros.

Vikram Sodhi and his partners did not stop there. Their aspiration to gain control of the company for greater management freedom led them to launch an initial Public Tender Offer (OPA) last year, which concluded on December 3, resulting in an additional 5.86% stake. This brought Sun Valley’s ownership to 30.85%. Four months later, on February 17, 2025, they launched a second OPA with the goal of acquiring between 5% and 9% at an offer price of COP 4,600 per share, with an acceptance period from February 21 to March 6.

On the first day of acceptances, the stock exchange did not register any interest at the offered price. Analysts, such as Davivienda Corredores, recommended against selling due to the stock’s growth potential. On February 20, Mineros’ stock was valued at COP 5,500 on the Colombian Stock Exchange and closed at COP 5,350 on February 21.

In 2024, Mineros reported revenues of COP 2,200,796 million, marking a 14.1% increase compared to the previous year, with net profits of COP 345,104 million, 17% higher than in 2023. These strong results were driven by a 23% increase in gold prices globally, reaching USD 2,387 per ounce last year.

Counteroffer by the Second-Largest Shareholder

On Monday, February 24, the second-largest shareholder, Negocios y Representaciones, which owns 12.57% of the company, launched a competing public tender offer—the first of its kind in Colombia—aiming to acquire an additional 21.57% of the company. This “Counter OPA” improved Sun Valley’s offer by COP 235, raising the bid to COP 4,835 per share.

The law firm advising Negocios y Representaciones on the construction of this innovative competing offer mechanism is Philippi Prietocarrizosa Ferrero DU & Uría, the same firm that advised Grupo Argos during Jaime Gilinski’s unsuccessful tender offer to acquire at least 26% of its shares.

Since a competing offer cannot be submitted or accepted by shareholders until it is approved by the Colombian Financial Superintendence (SFC), trading of Mineros shares on the Colombian Stock Exchange was suspended on February 24 and resumed on March 3.

Negocios y Representaciones Ltda is owned by the Moreno Echavarría family, former owners of the company. Its shareholders include Alfonso Moreno Jaramillo (10%), María del Pilar Echavarría de Moreno (45%), and Miguel Octavio Moreno Echavarría (45%). Recently, the company has been controlled by Alfonso Moreno Echavarría, a professor and investor based in Oxford. However, the majority shareholder is Miguel Octavio Moreno Echavarría, who owns 90% following a 2021 succession process in which he became the sole heir of María del Pilar Echavarría.

Sun Valley Modifies the Terms of Its Offer

On March 4, Sun Valley announced an increase in its offer price to COP 5,500 per share and expanded the number of shares it could acquire to 26%. This adjustment would increase its total ownership from the current 30.85% up to 56.85%. The acceptance period for this Modified Offer will run until March 18.

Sun Valley is being advised by Cárdenas & Cárdenas, an affiliate of Dentons, with offices in Bogotá and Medellín.

On the evening of March 5, the Moreno Echavarría family withdrew its Counter OPA and requested the Colombian Stock Exchange to release the bank guarantee it had provided for the competing public tender offer.

As a result, Vikram Sodhi and his partners are now free to acquire up to 77,931,725 additional ordinary shares and secure control of the company—albeit at a higher price than initially offered, which could be attractive to the Moreno Echavarría family, who, through their competing bid, succeeded in raising the stock price.

Read the original article in Spanish on Las 2 orillas: Click here.

Original article by Las 2 orillas published on March 6, 2025.