Sempra Energy will sell its 100% stake in Chilquinta Energía and 83.6% stake in Luz del Sur, as well as its interests in two energy-services companies, Tecnored and Tecsur, which offer electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively.
Sempra Energy chairman and CEO Jeffrey W. Martin said: “We have set a clear strategic goal of becoming North America’s premier energy infrastructure company. This planned sale allows us more focused capital investment in the U.S. and Mexico to support additional growth opportunities, with a view toward creating greater shareholder value and a stronger balance sheet.
“Luz del Sur in Peru, Chilquinta Energía in Chile and their affiliates have been strong-performing investments for us over the past two decades of our ownership. They’ve made significant contributions to Sempra Energy and offer exciting future growth opportunities.”
The company acquired about 50% stake in Chilquinta Energía and about 42% stake in Luz del Sur in 1999. In 2011, Sempra acquired its partners’ stakes in the companies, which resulted in 100% ownership of the Chilquinta Energía and majority ownership of Luz del Sur.
Luz del Sur has more than 4.9 million customer base in the southern region of Lima, Peru and is considered to be the largest electricity company in the country. The company is active in developing and operating hydroelectric projects including Santa Teresa hydroelectric plant in central Peru.
Chilquinta Energía is the third largest distributor of electricity in Chile. The company serves more than 2 million customers in the cities of Valparaiso and Viña del Mar in central Chile and plays an active role in developing and operating electric transmission lines.
Sempra Energy stated that it expects to complete the sale process by this year end.
Earlier this month, a subsidiary of Sempra Energy agreed to sell its non-utility natural gas storage facilities in the US to ArcLight Capital Partners for $332m in an all-cash deal.
The gas storage assets are being sold are the the Mississippi Hub and the Bay Gas storage facilities, located in Mississippi and Alabama, respectively.
