Sempra Energy to Sell 10% Stake in Infrastructure Unit for $1.8 Billion

(Bloomberg) -- Sempra agreed to sell a 10% non-controlling stake in its gas exports and Mexican pipeline unit to a subsidiary of Abu Dhabi Investment Authority for about $1.8 billion in cash.

The deal implies an enterprise value of $26.5 billion for Sempra Infrastructure Partners, which was created earlier this year through the consolidation of Sempra’s liquefied natural gas business and its Mexican IEnova unit, according to a statement Tuesday. In October, Sempra completed the sale of a 20% non-controlling interest in the infrastructure unit to an affiliate of KKR & Co. 

Sempra said the proceeds from the sale will go toward helping fund capital investments at its utilities and repurchase $500 million of the company’s stock. Sempra Chief Executive Jeff Martin has told investors he wanted to use proceeds from the energy company’s infrastructure partnership to strengthen the company’s balance sheet and fund growth projects at its regulated utilities in California and Texas. 

Sempra rose 0.4% in after-market trading after closing 0.8% higher at $128.51 in New York. The company’s stock has climbed less than 1% this year, under-performing the S&P 500 Utilities Index, which is up 11%. 

Sempra said it expected the sale to be completed by the summer of 2022, subject to closing conditions and approval from regulators. The company reaffirmed its full-year earnings guidance range of $8.10 to $8.70 a share. 

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