Sempra Energy’s sale of Chilquinta Energía on track

Source: press release, 9 June 2020

photo: Sempra Energy
photo: Sempra Energy

Sempra Energy and State Grid International Development Limited (SGID) have jointly announced that both companies remain firmly committed to completing the sale of Sempra Energy’s equity interests in its Chilean businesses, including its 100% stake in Chilquinta Energía S.A., and are targeting June 24 as the closing date.

“As we move to close the transaction, our primary focus continues to be on the safety and well-being of our employees, customers and communities,” says Dennis V. Arriola, executive vice president and group president of Sempra Energy. “We have received all the necessary approvals for the sale of our Chilean investments from the required governmental agencies in Chile and we plan to proceed with the closing with a target date of June 24.”

In addition to Chilquinta Energía, Sempra Energy also intends to sell a 100% interest in Tecnored S.A., which provides electric construction and infrastructure services to Chilquinta Energía and third parties, and 100% ownership of Eletrans S.A., which owns, constructs, operates and maintains power transmission facilities.

“Our planned investment in Chile is very strategic to the overall long-term growth of SGID and we are fully supportive of the Chilean government’s efforts to protect its citizens from the spread of COVID-19,” says Hu Yuhai, Chairman of SGID. “Our Board of Directors remains fully committed to completing this transaction with Sempra Energy. We expect confirmation on the last remaining filing in China with the National Development and Reform Commission (NDRC) very soon.”

In April, Sempra Energy announced the completion of the sale of its Peruvian businesses, including its 83.6% interest in Luz del Sur S.A.A., to an affiliate of China Yangtze Power International (Hongkong) Co., Limited, generating approximately USD 3.6 billion in total cash proceeds, subject to post-closing adjustments.

The sale of Sempra Energy’s Chilean businesses is subject to various conditions to closing, including confirmation on the last remaining filing with the NDRC. The completion of the Chilean transactions will conclude Sempra Energy’s planned sale of its South American businesses. Proceeds from the sales will be used to further strengthen the company’s balance sheet and liquidity position.