Sempra Energy Receives All Required Governmental Authorizations For $3.59 Billion Divestiture Of Luz Del Sur In Peru
Sale Expected to Close in April
Apr 10, 2020
SAN DIEGO, April 10, 2020 /PRNewswire/ -- Sempra Energy (NYSE:SRE) announced today that it has received all required governmental authorizations for the sale of the company's equity interests in its Peruvian businesses. The sale to China Yangtze Power International (Hongkong) Co., Limited (CYP) will generate approximately $3.59 billion in total cash proceeds and is subject to customary post-closing adjustments. This transaction includes Sempra Energy's 83.6% stake in Luz del Sur S.A.A. (Luz del Sur), as well as Tecsur, which provides electric construction and infrastructure services to Luz del Sur and third parties, and Inland Energy S.A.C., Luz del Sur's generation business.
"Receiving all required governmental authorizations 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," said Dennis V. Arriola, executive vice president and group president of Sempra Energy. "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."
Sempra Energy also continues to move forward with the sale of its equity interests in its Chilean business, including its 100% interest in Chilquinta Energía S.A. and Tecnored S.A., to State Grid International Development Limited (SGID) for approximately $2.23 billion in total cash proceeds, subject to adjustments and satisfaction of closing conditions.
In combination, Sempra Energy's planned sale of its South American businesses is expected to result in combined proceeds of approximately $5.82 billion in total cash proceeds, subject to adjustments and satisfaction of closing conditions.
BofA Merrill Lynch and Lazard are serving as financial advisors to Sempra Energy on the sale, and White & Case is serving as legal advisor.
Luz del Sur serves the southern region of Lima, Peru, and is the largest electric company in the country.
About China Yangtze Power International
CYP is a subsidiary of China Yangtze Power Co., which is China's largest publicly listed power company. China Yangtze Power Co. engages in electric power production, technological consultation of electric power generation and selected distribution services.
About Sempra Energy
Sempra Energy's mission is to be North America's premier energy infrastructure company. With more than $65 billion in total assets reported in 2019, the San Diego-based company is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' more than 20,000 employees deliver energy with purpose to over 40 million consumers worldwide. The company is focused on the most attractive markets in North America, including California, Texas, Mexico and the LNG export market. Sempra Energy has been consistently recognized for its leadership in diversity and inclusion, and sustainability, and is a member of the S&P 500 Utilities Index and the Dow Jones Utility Index. The company was also named one of the "World's Most Admired Companies" for 2020 by Fortune Magazine.
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These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.
Sempra South American Utilities, Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or Southern California Gas Company, and Sempra South American Utilities, Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the California Public Utilities Commission.
SOURCE Sempra Energy
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