Skip to main content

Sempra Energy to commence formal process to sell businesses in South America

Published by
LNG Industry,


Sempra Energy has announced that, in support of its strategy for North America, it will launch a formal process this March for the previously announced sale of its equity interests in its South American businesses.

This includes its 83.6% stake in Luz del Sur S.A.A. in Peru, as well as its 100% stake in Chilquinta Energía S.A. in Chile.

Trevor I. Mihalik, executive vice president and chief financial officer of Sempra Energy, said: “Our businesses in Peru and Chile are considered some of the most admired and desirable companies in the region.

“We expect this to be a highly competitive process with strong interest from both strategic and financial investors.”

According to the statement, Bank of America Merrill Lynch (BAML) and Lazard will reportedly act as financial advisors to the company in connection with the planned sale, whilst White & Case will act as legal advisor.

Sempra claims that the planned sale also includes its interests in two energy services companies – Tecnored and Tecsur – which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively. According to the statement, Sempra expects the sale process to be finalised by the end of this year.

Luz del Sul serves over 4.9 million consumers in the southern region of Lima, Peru, and is the largest electric company in that country. It is also active in the development and operation of hydroelectric projects, including its Santa Teresa hydroelectric plant in central Peru.

Chilquina Energía, meanwhile, is the third-largest distributor of electricity in Chile. It provides electricity to over 2 million consumers in the cities of Valparaiso and Viña del Mar in central Chile, and is also involved in the development and operation of electric transmission lines.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26022019/sempra-energy-to-commence-formal-process-to-sell-businesses-in-south-america/

 

Embed article link: (copy the HTML code below):