China Yangtze Power International’s $3.6 billion Acquisition of 83% Stake in Luz del Sur

Tian Yuan Law Firm, Baker McKenzie, Muñiz, Olaya, Meléndez, Castro, Ono & Herrera, White & Case and Rodrigo, Elías & Medrano advised on the deal

Sempra Energy (NYSE: SRE) 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. (Luz del Sur), to China Yangtze Power International (Hongkong) Co., Limited (CYP). Sempra Energy’s interests will be sold for $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.

An active sales process continues for Sempra Energy’s electric businesses in Chile, including the company’s 100% stake in Chilquinta Energía S.A. and Tecnored S.A. The company expects to announce an agreement in the fourth quarter of this year.

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

CYP is a subsidiary of China Yangtze Power Co., which is the largest publicly listed power company in China with a market capitalization of approximately $58 billion. China Yangtze Power Co. engages in electric power production, technological consultation of electric power generation and selected distribution services.

Sempra Energy’s mission is to be North America’s premier energy infrastructure company. With more than $60 billion in total assets reported in 2018, the San Diego-based company is the utility holding company with the largest U.S. customer base. The Sempra Energy companies’ more than 20,000 employees deliver energy with purpose to approximately 40 million consumers worldwide.

Tian Yuan Law Firm advised China Yangtze Power International (Hongkong) Co., Limited (CYP) with Jie Chai, Lihua Wang, Xiong Yin, Huiyan Chen, Qin Ma, Xiumei Sun and Jun Zhang.

In US, Baker McKenzie advised China Yangtze Power International (Hongkong) Co., Limited (CYP) with Lewis Popoff and Federico Cuadra Del Carmen.

In Perù, Muñiz, Olaya, Meléndez, Castro, Ono & Herrera advised China Yangtze Power International (Hongkong) Co., Limited (CYP) with Andrés Kuan-Veng Cabrejo (Picture), Jorge Muñiz Ziches, Guillermo Flores Borda, Frezzia Saavedra, Rolando Salvatierra, Mercedes Fernández Moscol, Jorge Otoya Cabrera, Alesandra Azcárate, Germán Gómez, Renato de Vettori, Milagros Mejía, José Angulo, Francisco Quevedo, Denisse Valderrama, Hilda Fernández and Emmanuel Polanco.

White & Case advised Sempra Energy with Thomas Lauria, Marwan Azzi, Gregory Pryor, Michael Deyong, David Dreier, Henrik Patel, Arlene Arin Hahn, Damien Nyer, Seth Kerschner, Adam Cieply, Jason Krause, Caelah Nelson, Dilara Erik, Arian Mossanenzadeh, Grayson Weeks, Vivian Tsoi, Grace Fan-Delatour, Shaohui Jiang and Xiaofeng (Allison) Gong.

In Perù, Rodrigo, Elías & Medrano Abogados advised Sempra Energy with Jean Paul Chabaneix, José Talledo Vinces, Cecilia Cánepa and Claudia Martínez.

Involved fees earner: Federico Cuadra del Carmen – Baker McKenzie; Lewis Popoff – Baker McKenzie; José Manuel Angulo Jugo – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Alesandra Azcárate – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Renato de Vettori – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Hilda Fernández – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Mercedes Fernández Moscol – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Guillermo Flores Borda – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Andrés Kuan-Veng Cabrejo – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Milagros Mejía – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Jorge Muñiz – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Jorge Otoya Cabrera – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Emmanuel Polanco – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Francisco Quevedo – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Frezzia Saavedra – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Rolando Salvatierra Combina – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Denisse Valderrama – Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Cecilia Cánepa – Rodrigo, Elías & Medrano Abogados; Jean Paul Chabaneix – Rodrigo, Elías & Medrano Abogados; Claudia Martínez – Rodrigo, Elías & Medrano Abogados; José Talledo – Rodrigo, Elías & Medrano Abogados; Jie Chai – Tian Yuan Law; Qin Ma – Tian Yuan Law; Lihua Wang – Tian Yuan Law; Xiong Yin – Tian Yuan Law; Marwan Azzi – White & Case; Adam Cieply – White & Case; Michael Deyong – White & Case; David Dreier – White & Case; Dilara Erik – White & Case; Grace Fan-Delatour – White & Case; Xiaofeng Gong – White & Case; Arlene Hahn – White & Case; Shaohui Jiang – White & Case; Seth Kerschner – White & Case; Jason Krause – White & Case; Thomas Lauria – White & Case; Arian Mossanenzadeh – White & Case; Caelah Nelson – White & Case; Damien Nyer – White & Case; Henrik Patel – White & Case; Gregory Pryor – White & Case; Vivian Tsoi – White & Case; Grayson Weeks – White & Case;

Law Firms: Baker McKenzie; Muñiz, Olaya, Meléndez, Castro, Ono & Herrera; Rodrigo, Elías & Medrano Abogados; Tian Yuan Law; White & Case;

Clients: China Yangtze Power Company; Sempra Energy;