The deal includes the stakes held by Sempra Energy across Chilquinta Energía, Tecnored, and Eletrans
Image: Sempra Energy headquarters in San Diego, California. Photo: courtesy of Sempra Energy.
Sempra Energy has agreed to sell its Chilean electric businesses, including its 100% stake in Chilquinta Energía, to China-based State Grid International Development (SGID) for $2.23bn in an all-cash deal.
The transaction also includes the energy infrastructure company’s 100% stake in Tecnored, and a 50% stake in Eletrans.
Chilquinta Energía is said to be the third-largest distributor of power in Chile. The electric utility is also involved in the development and operation of electric transmission lines in the country.
It serves the Valparaiso and Viña del Mar cities in central Chile by supplying electricity to more than two million consumers.
Tecnored provides electric construction and infrastructure services to Chilquinta Energía and third parties. Eletrans, on the other hand, owns, constructs, operates and maintains power transmission facilities.
In another development, Chilquinta Energía signed a deal to acquire the remaining 50% stake in Eletrans from Sociedad Austral de Electricidad. The closing of this deal, which will help Sempra Energy to transfer 100% ownership of Eletrans to SGID, is subject to the completion of the sale of its Chilean businesses.
Sempra Energy chairman and CEO Jeffrey Martin said: “This agreement is really important. It moves our company one step closer to completing the sale of our South American businesses and concentrating our investment strategy right here in North America.
“All of our companies in Chile, including Chilquinta Energía and Tecnored S.A., are excellent businesses with a strong focus on safety, reliability and customer service. We are so appreciative of the hard work and dedication of our Chilean team over the past 20 years.”
The closing of Sempra Energy’s sale of its Chilean electric businesses will be subject to approvals from the Chilean anti-trust authority, certain Chinese regulators, and the Bermuda Monetary Authority among other customary closing conditions. The transaction is likely to be completed in the first quarter of next year.
Sempra Energy also selling its Peruvian power businesses
Recently, Sempra Energy entered into a deal to offload its Peruvian power businesses to China Yangtze Power International (Hongkong), a subsidiary of China Yangtze Power, for $3.59bn. The deal includes the company’s 83.6% stake in Peruvian electric utility Luz del Sur, and its ownership interests in Tecsur and its generation business Inland Energy.