On June 24, 2020 local time, State Grid successfully completes 100% stake acquisition in Chilquinta Energía S.A. and Tecnored S.A.. It is the largest investment in Chile’s energy and public utility sector by Chinese enterprises, which is of great importance for the in-depth comprehensive strategic partnership between the two countries, bilateral trade and economic cooperation, and profound and practical collaboration on Belt and Road Initiative.
As the third largest power distribution company in Chile, Chilquinta Energía owns 16,911 kilometers of distribution lines and serves more than 2 million people. It is one of the leading companies in Chile for its quality service. Chilquinta Energía also engages in power transmission, with transmission lines of 1,109 kilometers. In October 2019, State Grid signed agreement with U.S. power company Sempra Energy to acquire its 100% stake in Chilquinta Energía and Tecnored.
This is the first investment of State Grid in a Spanish-speaking country, another fruitful result achieved by the company in implementing the going global strategy. Chile enjoys sovereign rating of A+, the highest among countries in Latin America. The completion is conducive for State Gird to optimize portfolio and achieve growth. At present, State Grid invests in and operates the backbone energy network assets in 9 countries and regions, including the Philippines, Brazil, Portugal, Australia, Italy, Hong Kong SAR, Greece, Oman, and Chile in a sound manner.
