China Three Gorges purchases additional stake in Peru’s Luz del Sur

Chinese state-owned power company China Three Gorges has launched a $569m mandatory ex post tender offer to acquire an additional stake in the Andean country’s largest electricity company, Luz del Sur.  

The tender offer was launched on January 22nd and closed on February 24th. The company holds now a 97.14% stake in Luz del Sur.   

The hydropower-focused company completed its acquisition of 83.64% of the shares in Luz del Sur in April last year. The deal, which was made through its subsidiary China Yangtze Power Co., was worth $3.5bn and was one of the largest Chinese overseas investments when the deal was announced in 2019.  

Established in 1996, Luz del Sur, a Peruvian electric power distribution company, is one of the largest electricity companies in Peru.

Muñiz, Olaya, Meléndez, Castro, Ono & Herrera acted as counsel to China Three Gorges with a team les by partners Jorge Muñiz, Sergio Oquendo and Mercedes Fernandez and assisted by associates Alesandra Azcárate, Rocío Izquierdo and Alessandro Heredia.