Sempra Energy sheds stake in Luz del Sur

Sempra Energy has entered into an agreement to sell its equity interests in its Peruvian businesses, including its 83.6% stake in Luz del Sur S.A.A., to China Yangtze Power International (Hongkong) Co., Limited (CYP). Sempra Energy's interests will be sold for US$3.59 billion in cash, subject to closing adjustments for working capital and net indebtedness.

The sale will also include Sempra Energy's interest in Tecsur S.A., which provides electric construction and infrastructure services to Luz del Sur and third parties, and Inland Energy S.A.C., Luz del Sur's generation business.

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

BofA Merrill Lynch and Lazard are serving as financial advisors to Sempra Energy on the sale, and White & Case is serving as legal advisor.

Luz del Sur serves the southern region of Lima, Peru, and is the largest electric company in the country.