Sempra Energy moving toward selling South American interests

Sempra Energy officials said next month the company would move forward with the formal process of selling its South American business interests, including sites in Peru and Chile.

The utility is interested in selling its 83.6-percent stake in Peru’s Luz del Sur S.A.A. as well as its 100-percent stake in Chilquinta Energía S.A. in Chile.

The sale also includes Sempra Energy’s interests in two energy-services companies, Tecnored and Tecsur, per officials, which provide electric construction and infrastructure services to Chilquinta Energía and Luz del Sur, respectively.

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, providing electricity to more than 2

million consumers in the cities of Valparaiso and Viña del Mar in central Chile.

“Our businesses in Peru and Chile are considered some of the most admired and desirable companies in the region,” Trevor I. Mihalik, executive vice president and chief financial officer of Sempra Energy, said. “We expect this to be a highly competitive process with strong interest from both strategic and financial investors.”

Bank of America Merrill Lynch (BAML) and Lazard will act as financial advisors to Sempra Energy in connection with the planned sale. White & Case will act as legal advisor.