Sempra Energy will next month launch the formal process to sell the equity stakes in its South American businesses.
As previously reported, Sempra is focusing on a strategic goal to become “North America’s premier energy infrastructure company” (PFR, 1/29).
The company has hired Bank of America Merrill Lynch and Lazard as financial advisers and White & Case as legal adviser on the sales.
Sempra expects a “competitive process”, with interest from strategic and financial investors.
In Peru, Sempra will sell its 83.6% stake in electricity supply company and hydropower developer Luz del Sur, while in Chile it will dispose of 100% of electricity distributor Chilquinta Energía.
Sempra will also sell its services companies Tecsur and Tecnored, which provide electric construction and infrastructure services to these two companies, respectively.
The sale process is due to complete before the end of 2019.
The Peruvian utility Luz del Sur has 4.9 million customers and has developed and operated hydro projects in the country, including the Santa Teresa plant. Sempra first invested in 2009 in a 42% stake, increasing this in 2011 to 83.6%. Institutional investors and the general public hold the remaining shares.
Chilquinta Energía has more than two million customers across Chile in Valparaiso and Viña del Mar. It also develops and operates electricity transmission lines. Sempra first acquired a 50% stake in 2009, before increasing this to 100% in 2011.
(A version of this article first appeared in IJGlobal)