Sempra Energy is nearing a deal to sell its Chilean assets to State Grid Corporation of China for about $3 billion, Reuters reported, citing people familiar with the matter.
In January, the San Diego-based company said it was planning to divest its South American assets and focus on its operations in North America. Activist investors Elliott Management Corp. and Bluescape Resources Company LLC had recommended Sempra sell off the "attractive, but non-core" subsidiaries.
Sempra's Chilean assets include Chilquinta Energia SA, the country's third-largest electricity distributor, and TecnoRed SA, an energy service company that provides electric construction and infrastructure services to Chilquinta Energía.
The potential deal could be announced as early as next week, though there was not complete certainty that the transaction would get completed, the report said.
Sempra had already announced in September that it would sell its equity interests in its Peruvian businesses to China Yangtze Power International (Hong Kong) Co. Ltd. for $3.59 billion in cash, subject to conditions.
