(Sempra, 10.Apr.2020) — Sempra Energy received all required governmental authorizations for the sale of the company’s equity interests in its Peruvian businesses. The sale to China Yangtze Power International (Hongkong) Co., Limited (CYP) will generate approximately $3.59 billion in total cash proceeds and is subject to customary post-closing adjustments.
CYP is a subsidiary of China Yangtze Power Co., which is China’s largest publicly listed power company. China Yangtze Power Co. engages in electric power production, technological consultation of electric power generation and selected distribution services.
This transaction includes Sempra Energy’s 83.6% stake in Luz del Sur S.A.A. (Luz del Sur), as well as Tecsur, which provides electric construction and infrastructure services to Luz del Sur and third parties, and Inland Energy S.A.C., Luz del Sur’s generation business.
Luz del Sur serves the southern region of Lima, Peru, and is the largest electric company in the country.
“Receiving all required governmental authorizations for the sale of our Peruvian businesses is another important step in strengthening Sempra Energy’s strategic mission to be North America’s premier energy infrastructure company,” said Dennis V. Arriola, executive vice president and group president of Sempra Energy. “We’re pleased that in spite of travel and logistics restrictions, all parties involved have been working closely together and we look forward to closing in April.”
Sempra Energy also continues to move forward with the sale of its equity interests in its Chilean business, including its 100% interest in Chilquinta Energía S.A. and Tecnored S.A., to State Grid International Development Limited (SGID) for approximately $2.23 billion in total cash proceeds, subject to adjustments and satisfaction of closing conditions.
In combination, Sempra Energy’s planned sale of its South American businesses is expected to result in combined proceeds of approximately $5.82 billion in total cash proceeds, subject to adjustments and satisfaction of closing conditions.
BofA Merrill Lynch and Lazard are serving as financial advisors to Sempra Energy on the sale, and White & Case is serving as legal advisor.
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