Sempra Energy has signed an agreement with China Yangtze Power International to sell its equity interests in its Peruvian businesses for $3.59bn.
The deal also includes the sale of Sempra’s 83.6% stake in Luz Del Sur.
China Yangtze Power is engaged in electric power production, technological consultation for electricity power generation and selected distribution services.
Sempra has agreed to divest its interests in Tecsur, which provides electric construction and infrastructure services to Luz del Sur, as well as to third parties, and Luz del Sur’s generation business, Inland Energy.
Sempra Energy chairman and CEO Jeffrey Martin said: “We could not be more pleased about today’s announcement.
“It directly supports our mission of building North America’s premier energy infrastructure company. Proceeds from this transaction will be used to strengthen our balance sheet and meet the growing capital needs of our core utilities in California and Texas.”
Completion of the deal is subject to customary closing conditions, including approval by the Peruvian anti-trust authority and Bermuda Monetary Authority, and is expected to take place in the first quarter of next year.
In a separate development, Sempra Energy’s subsidiary Sempra LNG signed a memorandum of understanding (MoU) with Chinese firm Three Gorges Corporation (CTG), the parent company of CYP.
Under the MoU, Sempra LNG has agreed to supply liquefied natural gas (LNG) to support demand growth in China.
Martin further added: “This initial agreement with CTG represents an opportunity to support strong growth in natural gas demand in Asia, with future expansions of our LNG projects right here in North America.”
In April, American Electric Power (AEP) subsidiary AEP Clean Energy Resources completed the purchase of Sempra Energy’s renewables business and its operating wind generation and battery assets.