Sempra Energy has completed the sale of its equity interests in its Chilean businesses to SGID, a fully-owned subsidiary of the Chinese power transmission company State Grid Corporation of China. The sale includes Sempra's 100% stake in Chilquinta Energía for US$2.23bn in cash, its 100% interest in Tecnored and its 50% stake in Eletrans. In addition, Chilquinta Energía signed an agreement to acquire the 50% held by Sociedad Austral de Electricidad in Eletrans, which will enable Sempra Energy to transfer 100% of Eletrans to SGID. Sempra Energy entered into an agreement with SGID in October 2019.
In March 2020, the National Economic Prosecutor's Office (FNE), which regulates and enforces competition regulations in Chile, approved the sale of Chilquinta Energía by Sempra Energy to State Grid International Development (SGID). In addition, the competition regulator also accepted the acquisition and the merger of the companies Eletrans, Eletrans II and Eletrans III by Chilquinta Energía.
Chilquinta Energía is the third-largest distributor of electricity in Chile, providing electricity to approximately 2 million consumers in the regions of Valparaíso and Maule in central Chile. In addition, Chilquinta Energía also develops and operates power transmission lines in Chile. Tecnored provides electric construction and infrastructure services to Chilquinta Energía and third parties, while Eletrans owns, builds, operates and maintains power transmission facilities. SGID currently has investments in the Philippines, Brazil, Portugal, Australia, Hong Kong, Italy and Greece and the transaction will enable the group to enter the Chilean market.