Sempra Energy plans to sell its equity interests in its South American businesses starting in March 2019. The sale will include its 83.6% stake in Luz del Sur in Peru and 100% stake in Chilquinta Energía in Chile.
“Our businesses in Peru and Chile are considered some of the most admired and desirable companies in the region,” said Trevor I. Mihalik, executive vice president and chief financial officer of Sempra Energy. “We expect this to be a highly competitive process with strong interest from both strategic and financial investors.”
Bank of America Merrill Lynch and Lazard will act as financial advisors to Sempra Energy in connection with the planned sale, while White & Case will act as its legal advisor.
The planned sale will also include Sempra Energy’s interests in two energy-services companies, Tecnored and Tecsur, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively. Sempra Energy expects the sale process to be completed by the end of 2019.
Luz del Sur serves more than 4.9 million consumers in the southern region of Lima, Peru, and is the largest electric company in that country.
Chilquinta Energía is the third-largest distributor of electricity in Chile. The utility provides electricity to more than 2 million consumers in the cities of Valparaiso and Viña del Mar in central Chile.
Based in San Diego, Sempra Energy is an energy infrastructure company with 2017 revenues of more than $11 billion and the largest customer base in the U.S.
