The sale includes Sempra Energy's 100% stake in Chilquinta Energía, along with 100% interest in Tecnored and a 50% interest in Eletrans
Sempra Energy divests its Chilean businesses. (Credit: Sempra Energy.)
Sempra Energy has completed the divestiture of its Chilean businesses to State Grid International Development (SGID), for a total of approximately $2.23bn in cash.
SGID is a wholly owned subsidiary of State Grid Corporation of China (SGCC).
The sale includes Sempra Energy’s 100% stake in Chilquinta Energía, along with 100% interest in Tecnored and a 50% interest in Eletrans.
Chilquinta Energía is the third-largest distributor of electricity in Chile.
Tecnored provides electric construction and infrastructure services to Chilquinta Energía and third parties, while Eletrans owns, constructs, operates and maintains power transmission facilities.
Sempra Energy chairman and CEO Jeffrey W Martin said: “Today’s announcement completes the divestiture of all of Sempra Energy’s South American assets, an important step in narrowing our strategic focus to the most attractive markets in North America.
“This sale furthers our mission to be North America’s premier energy infrastructure company. I commend all parties involved in getting this deal completed and want to thank the hardworking employees of Chilquinta Energía for their dedication to powering Chile’s homes, businesses, medical facilities and more.”
Sempra Energy to use sale proceeds to balance sheet and liquidity position
Closing of the Chilean transactions represent Sempra Energy’s sale of South American businesses, which resulted in approximately $5.82bn in combined total cash proceeds, subject to post-closing adjustments.
The company said that it will use the proceeds from the Chilean transactions to strengthen its balance sheet and liquidity position.
Sempra Energy has recently completed the sale of its Peruvian businesses, including its 83.6% interest in Luz del Sur, to an affiliate of China Yangtze Power International, for a total of approximately $3.59bn.
Chilquinta Energía provides electricity in the regions of Valparaíso and Maule in central Chile and is engaged in the development and operation of electric transmission lines.