The decision, which was taken as a precautionary measure, was taken in light of the financial situation of the fertilizer company. According to the supervisory body, the measure does not imply a takeover.

The Colombian Superintendency of Companies announced on Wednesday, December 11, that Monómeros Colombo Venezolanos will be subject to the highest degree of corporate supervision, called “control.”

In a statement, the Superintendency of Companies stated that the decision, which was preventive in nature, was taken in light of the company's financial situation, which is facing a decline in revenue, cash flow and opportunities to improve its sources of financing.

SCOPE OF THE MEASURE

“Control” does not imply a takeover by Supersociedades. According to the supervisory body, Monómeros will retain its autonomy within the limits established by the Constitution and the law.

This degree of supervision, regulated by Article 85 of Law 222 of 1995, falls exclusively on the company and not on its shareholders, who retain their ownership and disposal rights over the shares, according to what was announced by the Superintendency of Companies.

The agency also stated that, in the event that foreign shareholders decide to sell or enter into agreements that affect Monómeros' participation in the fertilizer market, they must comply with the provisions of the business integration regime, under the supervision of the Superintendency of Industry and Commerce.

While Monómeros is under the highest degree of supervision, the Superintendency of Companies may:

- Promote the presentation of improvement plans and programs.

- Authorize statutory reforms and capitalizations.

- Supervise the granting of guarantees on the company's assets.

- Review operations outside the ordinary course of business.

The situation of Monómeros before the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury, according to Supersociedades, is not part of the scope of this measure and remains the exclusive responsibility of said foreign entity.

The Superintendent of Companies, Billy Escobar Pérez, said that the supervision seeks to "contribute to its growth and preservation (of Monómeros), given its impact on the economy, on its interest groups, which include farmers and workers," he said.

The measure is subject to appeal and reconsideration, in accordance with the procedure established by the Superintendency of Companies.