PSEG Global has agreed to sell its 50% stake in Chilean electric distributor Chilquinta Energia and its affiliates and its 38% ownership interest in Peruvian electric distributor Luz del Sur and its affiliates to a subsidiary of AEI, for $685 million.
As of June 30, 2007, PSEG’s proportionate share of these investments had net debt of approximately $200 million, yielding an aggregate transaction value of approximately $885 million.
Matthew McGrath, president of PSEG Global, said: These are attractive assets with excellent management and employees. PSEG is pleased that these companies have consistently produced strong financial results and operational performance. Divesting of these holdings is consistent with our investment approach concerning our international assets: remain open to opportunistically monetize investments when market conditions warrant, increase the financial strength of our company and redeploy capital into our core business.
Chilquinta is the fourth largest distributor of electricity in Chile. It serves more than 576,000 customers. Luz del Sur is one of the largest companies in Peru, serving approximately 800,000 customers.