Milbank LLP advised electric power distribution company Sociedad Austral de Electricidad S.A. (“SAESA”) in its agreement to sell to Chilquinta Energía S.A. (“Chilquinta”) its interests in Eletrans S.A., Eletrans II S.A. and Eletrans III S.A. (collectively, “Eletrans”), which are joint ventures between SAESA and Chilquinta that own, operate, maintain and construct power transmission facilities in Chile. Chilquinta is Chile’s third-largest electricity distributor serving nearly 2 million customers in central Chile.
SAESA’s agreement to sell its interests in Eletrans to Chilquinta was entered into in connection with San Diego-based energy infrastructure company Sempra Energy’s agreement to divest its equity interests in its Chilean businesses, including its 100 percent stake in Chilquinta, to State Grid International Development Limited (“SGID”), a wholly owned subsidiary of State Grid Corporation of China, for US$2.23 billion.
The Milbank team was led by Global Corporate partner and practice group leader John Franchini with senior associate Aaron Stine and associates Daniel Valenza and Flora Gonzalez.
Mr. Franchini said: “We are pleased to have advised SAESA in this important sale transaction which is to be consummated in connection with Sempra’s sale of its Chilean assets to China State Grid.”