Enel’s generation and distribution operations in Peru have more than 1.5 million customers, who could now be served by the Asian giant’s state-owned electricity company.
Chinese capital corporation Southern Power Grid would be interested in buying the distribution operations of Enel SpA in Peru, an operation that would approach US$3,000 million – one of the largest cross-border agreements of a Chinese buyer this year -, according to Bloomberg.
The Guangzhou-based state-owned company is working with a financial adviser after participating in a second bidding round and completing due diligence, said sources who asked not to be named “because the matter is private.”
As recalled, last November, Enel confirmed its departure from Peru, as part of a major international strategy to cut debt and optimize its business portfolio.
The Italian company has reported that its exit from the national market, scheduled for 2023, has concentrated the interest of other electricity companies in the industry, as well as infrastructure funds.
“The reason for the sale is that we have reached a stable growth position. We cannot invest much more in the country for various reasons, therefore it is not a judgment on whether we like Peru or not, but we have finished what we had to do there and there is not much more to do compared to other places”, commented in November the CEO of the energy company, Francesco Starace at a press conference.
Enel Peru leaves in 2023
Enel’s generation and distribution operations in Peru have more than 1.5 million clients, according to the company’s website. Enel Distribución Perú supplies electricity to the northern area of Metropolitan Lima, the constitutional province of Callao and the provinces of Huaura, Huaral, Barranca and Oyón. It distributed 8,441 gigawatt hours in 2021, according to a press release.
The acquisition of Enel’s distribution assets in Peru would help boost China Southern Power’s presence in Latin America after it bought a 28% stake in Chilean utility Transelec SA from Brookfield Infrastructure Partners for around US$ 1.3 billion in 2018.
Source: Larepublica
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