By Nelson Bocanegra

BOGOTA (Reuters) – Shareholders of Grupo Argos and Grupo SURA, two of Colombia's largest conglomerates, on Monday authorized their boards to explore alternative corporate structures to possibly split the currently interconnected firms.

Argos and SURA are part of the informal alliance known as Grupo Empresarial Antioqueno (GEA), which consists of over a hundred firms linked through complex shareholding arrangements and partnerships. This includes lenders such as Bancolombia (NYSE:CIB), cement maker Cementos Argos, energy firm Celsia, and pension fund Proteccion.

Shareholders voted for their boards to examine various structure options without causing a conflict of interest, as stated by Argos and an unnamed source from SURA.

Argos currently holds a 45.8% stake in SURA, while SURA owns 45% of Argos.

Argos' CEO, Jorge Mario Velasquez, informed shareholders during a meeting in Medellin that the firm has engaged corporate financial advisors to investigate potential alternatives. "We do not have a strict time-frame as of today," Velasquez remarked. "This is going to take some time so that we are able to study the matter prudently and make a competent decision."

The assessment of a new corporate structure comes in light of moves by Grupo Gilinski – a competing alliance run by one of Colombia's wealthiest individuals, Jaime Gilinski – and its Arab partner, the International Holding Company (IHC).

Gilinski has made multiple share offers in GEA firms and attempted a failed tender offer in 2022 for nearly a third of Grupo Argos shares. Last year, Grupo Gilinski clinched a deal for a controlling stake in the largest food processor, Nutresa, while exiting its investment in SURA.

SURA's chairman, Ricardo Jaramillo, informed shareholders that it is time to explore alternatives to the current ownership structure, as reported by the source from SURA.