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Sempra Energy sells equity interests in Peruvian businesses

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Sempra Energy has announced that it has entered into an agreement to sell its equity interests in its Peruvian businesses, including its 83.6% stake in Luz del Sur S.A.A., to China Yangtze Power International (Hongkong) Co., Ltd. (CYP).

Sempra Energy’s interests will be sold for US$3.59 billion in cash, subject to closing adjustments for working capital and net indebtedness.

“We could not be more pleased about today’s announcement,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy. “It directly supports our mission of building North America’s premier energy infrastructure company. Proceeds from this transaction will be used to strengthen our balance sheet and meet the growing capital needs of our core utilities in California and Texas.”

The sale will also include Sempra Energy’s interest in Tecsur S.A., which provides electric construction and infrastructure services to Luz del Sur and third parties, and Inland Energy S.A.C., Luz del Sur’s generation business.

The sale is expected to be completed in 1Q20, subject to customary closing conditions, including approval by the Peruvian anti-trust authority and the Bermuda Monetary Authority.

An active sales process continues for Sempra Energy’s electric businesses in Chile, including the company’s 100% stake in Chilquinta Energía S.A. and Tecnored S.A. The company expects to announce an agreement in 1Q19.

BofA Merrill Lynch and Lazard are serving as financial advisors to Sempra Energy on the sale, and White & Case is serving as legal advisor.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/01102019/sempra-energy-sells-equity-interests-in-peruvian-businesses/

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