Sempra Energy sells Chilean businesses to SGID for $2.23bn

25 June 2020 (Last Updated August 18th, 2020 05:02)

North American energy infrastructure company Sempra Energy has completed the sale of its Chilean businesses to State Grid International Development for $2.23bn.

Sempra Energy sells Chilean businesses to SGID for $2.23bn
SGID will acquire Sempra Energy’s 100% stake in Chilquinta Energía. Credit: Sempra Energy.

North American energy infrastructure company Sempra Energy has completed the sale of its Chilean businesses to the State Grid International Development (SGID) for $2.23bn.

Under the deal, SGID will acquire Sempra Energy’s 100% stake in Chilquinta Energía.

The purchased company distributes electricity in Chile and serves approximately two million people across the Valparaíso and Maule regions.

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 also sold the entirety of Tecnored, which offers electric construction and infrastructure services to Chilquinta Energía and others.

The deal included the divestment of a 50% stake in Eletrans, which owns, constructs, operates and maintains power transmission facilities.

With the divesture of Chilean business, Sempra Energy has completed the sale of its South American businesses. It has earned approximately $5.82bn from the sales, and the company will use the proceeds to further strengthen its balance sheet and liquidity.

Last October, Sempra Energy signed an agreement to divest its equity interests in its Chilean businesses to SGID for $2.23bn.