Sempra Energy has entered into an agreement with State Grid International Development (SGID) - a fully-owned subsidiary of the Chinese power transmission company State Grid Corporation of China - to sell its equity interests in its Chilean activities. The sale will include 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 has 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. The transaction is expected to be completed in the first quarter of 2020, subject to customary closing conditions.
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.
Earlier in October, Sempra agreed to sell its equity interests in its Peruvian businesses, including its 83.6% stake in the power distribution company Luz del Sur, to China Yangtze Power Co. (CYPC), a subsidiary of China Three Gorges Power Corporation (CTGPC) for US$3.6bn in cash. The sale is also expected to be completed in the first quarter of 2020.