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Sempra Energy to Sell Chilquinta Energía in Chile

Power News - Published on Wed, 16 Oct 2019

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Sempra Energy announced that it has entered into an agreement to sell its equity interests in its Chilean businesses, including its 100% stake in Chilquinta Energía SA to State Grid International Development Limited. Sempra Energy's interests will be sold for USD 2.23 billion in cash, subject to adjustments for working capital and net indebtedness and other adjustments. The sale also will include Sempra Energy's 100% interest in Tecnored SA which provides electric construction and infrastructure services to Chilquinta Energía and third parties, and its 50% interest in Eletrans SA, which owns, constructs, operates and maintains power transmission facilities.

Chilquinta Energia signed an agreement to purchase the remaining 50% interest in Eletrans S.A. from Sociedad Austral de Electricidad S.A. Closing of this transaction, which will enable Sempra Energy to transfer 100% ownership of Eletrans S.A. to SGID, is contingent on the closing of the sale of Sempra Energy's Chilean businesses and will not change the economics of the transaction for Sempra Energy.

The sale to SGID is expected to be completed in the first quarter of 2020, subject to customary closing conditions, including approval by the Chilean anti-trust authority, certain Chinese regulatory approvals and approval by the Bermuda Monetary Authority.

Mr Jeffrey W Martin, chairman and CEO of Sempra Energy said that "This agreement is really important. It moves our company one step closer to completing the sale of our South American businesses and concentrating our investment strategy right here in North America. All of our companies in Chile, including Chilquinta Energia and Tecnored SA are excellent businesses with a strong focus on safety, reliability and customer service. We are so appreciative of the hard work and dedication of our Chilean team over the past 20 years."

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Posted By : Rabi Wangkhem on Wed, 16 Oct 2019
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