Sempra Energy wins governmental authorisations for Peruvian businesses sale

13 April 2020 (Last Updated April 13th, 2020 16:58)

Sempra Energy has obtained all required governmental authorisations for the divestiture of equity interests in its Peruvian businesses.

Sempra Energy wins governmental authorisations for Peruvian businesses sale
Sempra Energy to sell its stake in Luz del Sur, as well as Tecsur, and Inland Energy. Credit: Sempra Energy.

Sempra Energy has obtained all required governmental authorisations for the divestiture of equity interests in its Peruvian businesses.

As per the terms of the deal, Sempra Energy will sell its 83.6% stake in Luz del Sur, as well as Tecsur, and Inland Energy.

The Peruvian businesses are being sold to China Yangtze Power International (Hongkong) for $3.59bn.

Tecsur offers electric construction and infrastructure services to Luz del Sur and third parties, while Inland Energy is Luz del Sur’s generation business.

Sempra Energy executive vice-president and group president Dennis Arriola said: “Receiving all required governmental authorisations 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.

“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.”

The deal was first announced in October last year.

China Yangtze Power is engaged in electric power production, technological consultation for electricity power generation and selected distribution services.

Additionally, Sempra Energy will sell its equity interests in its Chilean business, including its 100% interest in Chilquinta Energía and Tecnored, to State Grid International Development (SGID) for approximately $2.23bn in total cash proceeds.

In total, Sempra energy is expected to generate a revenue of approximately $5.82bn, subject to adjustments and satisfaction of closing conditions.

For this transaction, BofA Merrill Lynch and Lazard are serving as financial advisors to Sempra Energy, and White & Case as legal advisor.