Sempra Energy has agreed to sell another of its South American businesses to a Chinese company. The San Diego–based firm is planning to sell its Chilean business to China’s State Grid International Development (SGID) in a $2.23 billion all-cash deal, the company reported on Oct. 14.
The sale also includes Sempra’s 100 percent stake in Chilquinta Energia, its 100 percent interest in Tecnored S.A., which provides electric construction and infrastructure services to Chilquinta Energia and third parties, and its 50 percent interest in Eletrans S.A., which owns, constructs, operates and maintains power transmission facilities.
The deal follows Sempra’s September sale of its Peruvian businesses, including its 83.6 percent stake in Luz del Sur to China Yangtze Power International (Hong Kong) Co., in a $3.59 billion all-cash deal.
These transactions will conclude Sempra Energy's planned sale of its South American businesses for combined $5.82 billion in cash.
“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,” said Jeffrey Martin, chairman and CEO of Sempra Energy.
The sale is expected to be completed in first quarter 2020, subject to customary closing conditions.