Grupo Argos advances ACE 1.0 with a share repurchase of approximately COP 39 billion on terms aligned with prevailing market conditions

• Approximately COP 39 billion will be awarded at a price of COP 21,900 per common share and COP 16,500 per preferred share, as a result of the share repurchase offer conducted through the Independent Mechanism of the Colombian Stock Exchange, announced on August 27.
• The result reflects Grupo Argos’ discipline in capital allocation, in line with its objective of executing share repurchases consistent with market conditions.

As part of the ACE 1.0 program, Argos Convergence Effort, Grupo Argos is moving forward to the allocation stage of the share repurchase offer conducted through the Independent Mechanism between August 27 and 31 under a book-building process.

The Repurchase Committee appointed by the company’s Board of Directors determined a cutoff price of COP 21,900 per common share, allowing for the allocation of 1,368,769 shares for a total amount of COP 29.976 billion. For preferred shares, the Committee determined a cutoff price of COP 16,500 per share, allowing for the allocation of 560,390 shares for a total amount of COP 9.246 billion. This outcome is consistent with Grupo Argos’ criteria for efficient and disciplined capital allocation, prioritizing opportunities in which share repurchases represent an attractive return alternative relative to other potential uses of capital.

This offer is part of the execution of the third pillar of ACE 1.0, which contemplates deploying COP 500 billion in share repurchases over the next 6 to 12 months, using both the trading systems and the Independent Mechanism.

“The execution of ACE is based on allocating capital where we identify opportunities to generate returns significantly above our cost of capital. This transaction allowed us to repurchase, in a single operation, a volume equivalent to two-thirds of the amount repurchased during the year through the trading system, taking advantage of attractive conditions and demonstrating the flexibility provided by the Independent Mechanism. We will continue allocating capital to the alternative that offers the highest risk-adjusted return and the greatest potential for value creation for our shareholders, in line with Grupo Argos’ role.”

Felipe Aristizábal, CFO of Grupo Argos

The share repurchase represents another step forward in the execution of ACE 1.0, which seeks to accelerate the generation, capture, and transfer of value at Grupo Argos and contribute to the convergence of the company’s market price toward its fundamental value.

Grupo Argos will continue assessing market conditions and flexibly using the mechanisms available to advance its share repurchase program.