Sempra Energy to sell businesses in Peru and Chile

Source: press release, 25 February 2019

photo: Sempra Energy
photo: Sempra Energy

Sempra Energy has announced that, in support of the company’s North American strategy, it will launch a formal process in March for the previously announced sale of its equity interests in its South American businesses, including its 83.6% stake in Luz del Sur S.A.A. in Peru and 100% stake in Chilquinta Energía S.A. in Chile.

“Our businesses in Peru and Chile are considered some of the most admired and desirable companies in the region,” says Trevor I. Mihalik, executive vice president and chief financial officer of Sempra Energy. “We expect this to be a highly competitive process with strong interest from both strategic and financial investors.”

The planned sale also includes 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 expects the sale process to be completed by the end of 2019.

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

Chilquinta Energía is the third-largest distributor of electricity in Chile. The utility provides electricity to more than 2 million consumers in the cities of Valparaiso and Viña del Mar in central Chile and is active in the development and operation of electric transmission lines.