Sempra Pipelines & Storage, a unit of Sempra Energy subsidiary, will acquire AEI's stake in two South American electric distribution utilities jointly owned with AEI for $875m.

Currently, Sempra and AEI each own 50% of Chilquinta Energia in Chile and about 38% of Luz del Sur in Peru.

With this deal, Sempra Pipelines & Storage will be the sole owner of Chile’s Chilquinta Energia and own about 76% of Luz del Sur in Peru.

Chilquinta Energia serves about 590,000 customers in the cities of Valparaiso and Vina del Mar in central Chile, while Luz del Sur serves about 886,000 customers in the southern zone of Lima, Peru,and delivers approximately one-third of all power used in the country.

Sempra Pipelines & Storage.president and chief executive officer George S. Liparidis said that Chilquinta Energia and Luz del Sur are based in high-growth areas of South America – in two countries with increasing levels of foreign investment, strong institutions and stable political and business environments.

The transaction expected to close in the second quarter of 2011 and is likely to bring in extra earnings per share for Sempra Energy, and the company has increased its 2011 earnings-per-share outlook to a range of $4.00 to $4.30.

As per the deal, Sempra Pipelines & Storage will also purchase AEI’s interest in two energy-services companies, Tecnored and Tecsur, depending on AEI shareholder approval and other closing conditions.