Summary
Sempra Energy (SRE) announced the completion of the sale of its indirect controlling stake (83.6%) in Luz del Sur S.A.A. and its interest in Tecsur S.A. to China Yangtze Power International (Hongkong) Co., Limited (CYP International). This transaction, valued at an aggregate base purchase price of $3.59 billion, subject to post-closing adjustments, marks a significant divestiture for Sempra. Luz del Sur is a major electric distribution utility serving approximately 4.9 million people in Lima, Peru, and also owns a hydroelectric power plant, while Tecsur provides energy services. This sale is expected to result in a substantial pre-tax gain of approximately $2.3 billion (or $1.5 billion after tax) for Sempra Energy. The company has previously reported the results of these discontinued operations in its 2019 Form 10-K, meaning pro forma financial information for this sale is not required in this 8-K filing. Investors should note this divestiture as it represents a strategic move and a significant financial event for Sempra.
Key Highlights
- 1Sempra Energy completed the sale of its 83.6% indirect interest in Peruvian electric utility Luz del Sur and its interest in Tecsur.
- 2The buyer is an affiliate of China Yangtze Power International (Hongkong) Co., Limited (CYP International).
- 3The aggregate base purchase price for the transaction was $3.59 billion, subject to post-closing adjustments.
- 4Sempra Energy expects to recognize a significant pre-tax gain of approximately $2.3 billion ($1.5 billion after tax) from this sale.
- 5Luz del Sur serves approximately 4.9 million customers in Lima, Peru, and owns a 100-megawatt hydroelectric power plant.
- 6Tecsur provides electric construction and infrastructure services.
- 7This divestiture is part of a previously announced strategic move, with prior reporting of discontinued operations in Sempra's 2019 10-K.