Sempra Energy has announced that, as part of its increasing focus on North American markets, the company is initiating the process to sell its equity interests in its South American businesses, including Luz del Sur S.A.A. in Peru and Chilquinta Energía S.A. in Chile.
“We have set a clear strategic goal of becoming North America's premier energy infrastructure company,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy. “This planned sale allows us more focused capital investment in the US and Mexico to support additional growth opportunities, with a view toward creating greater shareholder value and a stronger balance sheet.
“Luz del Sur in Peru, Chilquinta Energía in Chile and their affiliates have been strong-performing investments for us over the past two decades of our ownership. They've made significant contributions to Sempra Energy and offer exciting future growth opportunities.”
The planned sale includes Sempra Energy's 100% stake in Chilquinta Energía and 83.6% stake in Luz del Sur, as well as Sempra Energy's interests in two energy-services companies, Tecnored and Tecsur, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively. Sempra Energy originally acquired approximately 50% ownership in Chilquinta Energía and an approximate 42% ownership interest in Luz del Sur in 1999. In 2011, Sempra Energy acquired its partner's stakes in the utilities, resulting in 100% ownership of Chilquinta Energía and majority ownership of Luz del Sur. Some shares of Luz del Sur are held by institutional investors and the general public.
Sempra Energy expects the planned sales process to be completed by the end of 2019.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/29012019/sempra-moving-on-from-peru-and-chile/