Sempra Energy preps to sell power units in Peru, Chile

Transmission lines. Author: Nayu Kim. License: Creative Commons, Attribution 2.0 Generic.

February 27 (Renewables Now) - US energy infrastructure company Sempra Energy (NYSE:SRE) plans to launch a formal sale process next month for its power businesses in Peru and Chile, including a hydroelectric projects developer.

San Diego-based Sempra Energy is looking to sell its 83.6% stake in Luz del Sur SAA in Peru and its 100% interest in Chilquinta Energia SA in Chile. Moreover, the US company seek to divest its interests in two energy services firms, namely Tecsur and Tecnored, which provide electric construction and infrastructure services to the two power distributors in Peru and Chile, respectively.

"We expect this to be a highly competitive process with strong interest from both strategic and financial investors," said Trevor I Mihalik, executive vice president and chief financial officer of Sempra Energy. The US company anticipates closing the planned transactions by the end of the year.

Luz del Sur is an electric company that serves over 4.9 million consumers in the southern region of Lima, Peru. The firm also develops and operates hydropower plants (HPPs), including the Santa Teresa facility in the central part of the country.

Chilquinta Energia, in turn, serves more than 2 million consumers in the cities of Valparaiso and Vina del Mar in central Chile. The utility is also engaged in the development and operation of power transmission lines.

Bank of America Merrill Lynch (BAML) and Lazard are serving as Sempra’s financial advisors, while White & Case acts as legal advisor.

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