Sempra Energy completes purchase of Dominion Argentine assets
Sempra Energy International acquired an additional 21.5% interest in Sodigas Pampeana and Sodigas Sur, holding companies that control Camuzzi Gas Pampeana S.A., and Camuzzi Gas del Sur S.A., raising its total stake to 43%.
In a separate transaction, Sempra Energy International sold its 25% stake in BAECO, a holding company with a controlling interest in electric company Empresa Distribuidora de Energia Atlantica S.A. (EDEA), to Camuzzi Argentina for an undisclosed amount.
Sempra Energy International had previously acquired the BAECO stake from Dominion. Camuzzi Argentina now owns 100% of BAECO, whose EDEA subsidiary delivers electricity to more than 400,000 customers in the province of Buenos Aires.
Sempra Energy International and Camuzzi Argentina are now the sole partners in the Sodigas companies, with 43% and 57% of the shares, respectively. The two partners announced that they have entered into a new shareholder agreement under which each company will have management control and voting rights that reflect its ownership stake. Accordingly, Camuzzi Argentina will have a majority of the Board of Directors.
"We believe that this is an excellent shareholder agreement that is the foundation of a new working relationship with our partner, Camuzzi Argentina," said Darcel L. Hulse, senior vice president of Sempra Energy and also president of the subsidiary, Sempra Energy International.
"Our expertise in the U.S. and Latin American gas and electricity markets is a perfect complement to the skill and technical know-how Camuzzi has demonstrated in operating Argentina's largest combined natural gas utility. Our interests are aligned on the common business objectives of increasing our customer base and becoming an even more efficient gas delivery company."
Camuzzi Gas Pampeana and Camuzzi Gas del Sur serve a combined 1.2 million customers in central and southern Argentina, delivering about one-third of all the natural gas distributed in the country.
"Camuzzi Argentina is very pleased with the new agreement with Sempra Energy International," said Fabrizio Garilli, vice chairman of Camuzzi Gazometri (Italy), and chairman of its subsidiary, Camuzzi Argentina. "We firmly believe that this framework will allow both partners to display their best capabilities in further developing Sodigas and meeting its long-term business objectives, such as extending its distribution network and providing the best possible service to customers."
The two partners said all outstanding legal issues between them and the previous partners have been dismissed, paving the way for them to jointly focus on the future direction of the Argentine utilities.
According to Thos. E. Capps, Dominion's chairman, president and CEO, the transaction completes the company's exit from Latin America. Through the ongoing divestiture of non-core and other assets, including its financial services businesses, Dominion expects to have raised a total of more than US$1.5 billion in cash.
Sempra Energy International develops, operates and owns energy projects. The company currently is involved in joint or solo ventures that provide natural gas and electricity services to more than 2.5 million customers in Argentina, Canada, Chile, Mexico, Peru, the United States and Uruguay.
Edited by April C. Murelio, Power Online managing editor