SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report
(Date of earliest event reported): June 10, 1999
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SEMPRA ENERGY
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(Exact name of registrant as specified in its charter)
CALIFORNIA 1-14201 33-0732627
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(State of incorporation (Commission (I.R.S. Employer
or organization) File Number) Identification No.
101 ASH STREET, SAN DIEGO, CALIFORNIA 92101
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(Address of principal executive offices) (Zip Code)
(619) 696-2034
Registrant's telephone number, including area code-------------------
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(Former name or former address, if changed since last report.)
FORM 8-K
Item 5. Other Events
On June 10, 1999 the international subsidiaries of Sempra Energy
and Public Service Enterprise Group announced the finalization of
the joint purchase (on a 50/50 basis) of Chilquinta Energia S.A.
(Energia) from parent company Chilquinta S.A. for $840 million.
Sempra Energy and Public Service Enterprise Group completed the
acquisition of 90 percent of Energia and will tender for the
remaining 10 percent later this year. The press release describing
the announcement is attached as Exhibit 99.1.
Item 7. Financial Statements And Exhibits.
(c) Exhibits
99.1 Press Release of the Company issued June 10, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
SEMPRA ENERGY
(Registrant)
Date: June 10, 1999 By: /s/ F. H. Ault
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F. H. Ault
Vice President and Controller
EXHIBIT 99.1
NEWS
Contact: Michael Clark Paul Rosengren
Sempra Energy International PSEG Global
In the United States (877) 866-2066 (973) 430-5911
International calls: (619) 696-4068 www.pseg.com
www.sempra.com
PSEG GLOBAL, SEMPRA ENERGY INTERNATIONAL COMPLETE PURCHASE OF
CHILQUINTA ENERGIA
Companies Also Announce Sale of Stake in Central Puerto Unit
SAN DIEGO and RIDGEWOOD, N.J., June 10, 1999 -- The
international subsidiaries of San Diego-based Sempra Energy [NYSE:
SRE], and New Jersey-based Public Service Enterprise Group [NYSE:
PEG] today finalized the purchase of 90 percent of Chilquinta Energia
S.A. from parent company, Chilquinta S.A. As part of the agreement,
the joint venture will make a tender offer later this year to acquire
the remaining 10 percent of Chilquinta Energia currently owned by
other shareholders.
The acquisition includes Chilquinta Energia, the third-largest
electricity distributor in Chile, serving 405,000 customers in
central Chile; Energas S.A., a natural gas distribution company that
will reach more than 50,000 customers in central Chile by 2003; and
37 percent (a controlling interest) in Luz Del Sur, S.A., the second-
largest electricity distributor in Peru, serving 690,000 customers in
the southern zone of metropolitan Lima.
In addition, the 50-50 joint venture has announced the sale of
its newly acquired 32-percent stake in Central Puerto S.A.,
Argentina's largest thermal generator, to Chilean power company Gener
S.A. for approximately $50 million. The sale is expected to close
next week. Central Puerto owns and operates two plants in Buenos
Aires and one in the Province of Neuquen in western Argentina,
representing a total of 1,379 megawatts (MW).
-more-
"The acquisition of Chilquinta Energia fits well with our
Latin American electric distribution strategy," said Robert L. Logan,
general manager, business development of PSEG Americas, the PSEG
Global company that operates in the United States and Latin America.
"The minority stake in the Central Puerto generation assets was
therefore not the strategic focus of the acquisition. We are pleased
to have reached a mutually beneficial agreement with Gener for the
purchase of this company."
"This strategic investment gives Sempra Energy International
the size and scale to be a major player in the Latin American energy
market," said Donald E. Felsinger, group president, unregulated
affiliates, for Sempra Energy and chairman of Sempra Energy
International. "With the addition of Chilquinta Energia, Sempra
Energy International looks forward to providing superior energy
services to 2.5 million customers in Chile, Argentina, Mexico, Peru
and Uruguay."
The total price for acquiring 100 percent of the shares of
Chilquinta Energia is $840 million. The acquisition was funded by
$520 million in equity provided equally by the two partners and $320
million in non-recourse debt provided by a syndicate of banks. Chase
Securities Inc. and Dresdner Kleinwort Benson acted as the initial
arrangers for the bank syndicate.
Sempra Energy International and PSEG Global will have shared
control and equal representation on Chilquinta Energia's board of
directors. Sempra Energy International will oversee operations in
Chile, while PSEG Global will oversee operations in Peru.
PSEG Global develops, owns, and operates private power and
distribution facilities with at least 35 projects in Argentina,
Brazil, Chile, China, India, Peru, the U.S., and Venezuela. The
company has assets valued at $1.5 billion. PSEG Americas is the
company's North and South American subsidiary and is headquartered in
Miami, supported by offices in Ridgewood, N.J.; Sao Paulo, Brazil;
Caracas, Venezuela; and Buenos Aires, Argentina. Investments in this
region include Rio Grande Energia, an electric distribution company
in southern Brazil, a 180 MW low-sulfur, heavy-fuel-oil plant in
Hawaii and a gas-fired plant in Venezuela. PSEG Global is a
subsidiary of Public Service Enterprise Group with revenues of $5.9
billion.
-more-
Sempra Energy International develops, operates and owns energy
projects outside the United States. The company currently is
involved in natural gas and electricity partnerships in Argentina,
Chile, Mexico, Peru and Uruguay. Sempra Energy International is a
subsidiary of Sempra Energy, a Fortune 500 energy services holding
company, based in San Diego, with 12,000 employees, revenues of $5.5
billion and more than 6 million natural gas and electric meters
serving 21 million customers.
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