Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Access the Market Tools Trusted by Thousands of Investors Get Started
Sempra Energy to sell Peruvian businesses to China Yangtze for $3.59 billion
Published Sep 30, 2019 09:57AM ET
© Reuters. Sempra Energy headquarters is pictured in downtown San Diego
(Reuters) - Sempra Energy (NYSE:SRE) said on Monday it would sell its Peruvian businesses to a unit of China Yangtze Power Co for $3.59 billion, as part of a planned exit from South America to focus on its core U.S. and Mexican markets.
The decision to wind down South American businesses was announced in January following pressure from Elliott and Bluescape Resources at a time when California-based utilities were already under pressure from the devastating wildfires that hit the state.
Sempra intends to use the deal proceeds to bolster its balance sheet and fund capital needs for its core utilities in California and Texas, Chief Executive Jeffrey Martin said in a statement on Monday.
The company settled with the investors, who at that time held a combined 4.9%, by agreeing to add two new board members and review its liquefied gas portfolio.
Elliott no longer own any shares in Sempra, according to the fund's latest quarterly filing. https://www.sec.gov/Archives/edgar/data/1048445/000156761919016981/xslForm13F_X01/primary_doc.xml
Sempra also said it was continuing with the sale process for its businesses in Chile, including its 100% stake in Chilquinta Energía SA [SRECHQ.UL] and Tecnored SA. The company said it expected to announce an agreement in the fourth quarter.
Italian utility Enel (MI:ENEI) earlier this year made a non-binding bid for the assets Sempra was looking to sell in Chile and Peru..
The Peruvian sale will include the 83.6% stake in Luz del Sur, as well as interests in energy services firms Tecsur SA and Inland Energy SAC, the company said.
Sempra said the deal with China Yangtze Power International (Hongkong) Co, which has to be approved by the Peruvian anti-trust agency and the Bermuda Monetary Authority, is expected to be completed in the first quarter of 2020.
Sempra's subsidiary, Sempra LNG, has entered into an agreement with China Three Gorges Corp over potential supply of liquefied natural gas, the company said.
Since the announcement to sell the South America businesses, the company's shares have risen about 28% through Friday's close.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.