Electricity utility PSEG Global has sold its 50% ownership interest in the Chilean electric distributor Chilquinta Energia and its affiliates, and its 37.9% ownership interest in the Peruvian electric distributor Luz del Sur and its affiliates to a subsidiary of AEI for $685 million.
Taking into account PSEG’s proportional share of net debt on these investments, the transaction had a total value of approximately $885 million.
The transaction generated a pretax gain of approximately $155 million that will be offset by approximately $180 million of tax expense, resulting in an after-tax loss of approximately $25 million.
PSEG said that the after-tax net cash proceeds are expected to total approximately $480 million. The sale of these assets is expected to result in a dilution of PSEG’s future earnings per share of up to $0.10 annually.
Thomas O’Flynn, president of PSEG Energy Holdings, said: The sale of Chilquinta and Luz del Sur supports the long-term financial goals of Energy Holdings, and it’s in keeping with PSEG’s intent to focus on its core markets.