Sempra Energy to commence formal process to sell businesses in Peru and Chile

Sempra Energy has launched a formal process in March for the previously announced sale of its equity interests in its South American businesses, including its 83.6% stake in Luz del Sur S.A.A. in Peru and 100% stake in Chilquinta Energía S.A. in Chile.  

Luz del Sur serves more than 4.9 million consumers in the southern region of Lima, Peru, and is the largest electric company in that country. Luz del Sur also is active in the development and operation of hydroelectric projects, including its Santa Teresa hydroelectric plant in central Peru.

Chilquinta Energía is the third-largest distributor of electricity in Chile. The utility provides electricity to more than 2 million consumers in the cities of Valparaiso and Viña del Mar in central Chile, and also is active in the development and operation of electric transmission lines.

Sempra Energy is a San Diego-based energy infrastructure company with 2017 revenues of more than US$11 billion, is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' approximately 20,000 employees serve more than 40 million consumers worldwide.

The planned sale also includes Sempra Energy's interests in two energy-services companies, Tecnored and Tecsur, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively. Sempra Energy expects the sale process to be completed by the end of 2019.

Bank of America Merrill Lynch (BAML) and Lazard will act as financial advisors to Sempra Energy in connection with the planned sale, and White & Case will act as legal advisor.