Sempra Energy to acquire AEI’s stake in LatAm utilities for $875 mln

Sempra Energy, a US-based a Fortune 500 energy services holding company today said that its subsidiary, Sempra Pipelines & Storage, will acquire Ashmore Energy International's (AEI) stake in two South American utilities, jointly owned by AEI, for around $875 million.
 
Currently, Sempra Pipelines & Storage and AEI each own 50 per cent of Chilquinta Energía in Chile and approximately 38 per cent of Luz del Sur in Peru.

Upon completion of this transaction, Sempra Pipelines & Storage will own 100 per cent of Chilquinta Energía and approximately 76 per cent of Luz del Sur, with the remaining shares of Luz del Sur held by institutional investors and the general public.

Chilquinta Energía is an electric distribution utility serving approximately 590,000 customers in the cities of Valparaiso and Vina del Mar in central Chile.
 
Luz del Sur is an electric distribution utility that serves approximately 886,000 customers in the southern zone of metropolitan Lima, Peru, and delivers approximately one-third of all power used in the country.
 
Scheduled to close in the second quarter 2011, the transaction is expected to contribute additional earnings per share for Sempra Energy of approximately $0.15 per share in 2011 and $0.22 per share in 2012. 

''We expect these additional investments in Chilquinta Energía and Luz del Sur to produce stable, long-term returns for our shareholders,'' said Donald Felsinger, chairman and chief executive officer of Sempra Energy.

''We have been a co-owner of these utilities for 12 years.  Both Chilquinta Energía and Luz del Sur have a successful track record of earnings growth and offer continuing opportunities to re-invest capital in expanding infrastructure,'' he added.

''Chilquinta Energía and Luz del Sur are based in high-growth areas of South America – in two countries with increasing levels of foreign investment, strong institutions and stable political and business environments,'' said George Liparidis, president and chief executive officer of Sempra Pipelines & Storage.
 
As part of the transaction, Sempra Pipelines & Storage also has agreed to acquire AEI's interests in two energy-services companies, Tecnored S.A. and Tecsur S.A.
The transaction is subject to AEI shareholder approval and other closing conditions, including obtaining regulatory approvals and resolution of certain tax matters.

San Diego-based Sempra Pipelines & Storage develops, builds and operates natural gas pipelines and storage facilities in Latin America and the US.  The company operates and/or owns more than 2,000 miles of transmission pipelines and 23 billion cubic feet of natural gas storage capacity.