Sempra Energy completes divestiture of Luz Del Sur

Source: press release, 24 April 2020

photo: Sempra Energy
photo: Sempra Energy

Sempra Energy has announced that it completed the sale of its Peruvian businesses, generating approximately USD 3.59 billion in total cash proceeds, subject to post-closing adjustments. The sale to China Yangtze Power International (Hongkong) Co., Limited (CYP) and assigned to Yangtze Andes Holding Co., Limited includes Sempra Energy’s 83.6% stake in Luz del Sur S.A.A. (Luz del Sur), as well as 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.

“We are very pleased with today’s announcement as the sales proceeds will be used to further strengthen our balance sheet and our already solid liquidity position,” says Jeffrey W. Martin, chairman and CEO of Sempra Energy. “We’re also very excited that, in the face of current travel restrictions, all parties worked safely together to complete this deal as expected. We also remain on track for the sale of our Chilean businesses, which will complete the divestiture of all of Sempra Energy’s South American assets and further our mission to become North America’s premier energy infrastructure company.”

Sempra Energy continues to move forward with the sale of its Chilean assets, including its 100% interest in Chilquinta Energía S.A., to State Grid International Development Limited for approximately USD 2.23 billion in total cash proceeds, subject to adjustments and satisfaction of closing conditions.

In combination, these transactions will conclude Sempra Energy’s planned sale of its South American businesses for approximately USD 5.82 billion in total cash proceeds, subject to adjustments and, with respect to the sale of its Chilean assets, satisfaction of closing conditions.

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

Luz del Sur serves the southern region of Lima, Peru, and is the largest electric company in the country.