San Diego-headquartered energy infrastructure company Sempra has sold a 10% stake in its Sempra Infrastru…
San Diego-headquartered energy infrastructure company Sempra has sold a 10% stake in its Sempra Infrastructure Partners subsidiary to a company owned by the Abu Dhabi Investment Authority (ADIA).
The USD 1.785 billion sale, agreed in late December, values Sempra Infrastructure at USD 26.5 billion and should close later this year subject to closing conditions and regulatory approval. Sempra will use the money received to increase its capital expenditure, improve its balance sheet and repurchase USD 500 million in stock.
It has been a busy 12 months for Sempra Infrastructure, which was created in 2021 through a merger between Sempra LNG and Infraestructura Energética Nova, forming a combined power, energy networks, liquefied natural gas and consultancy business. Subsequently, in October, of 20% of Sempra Infrastructure was sold to an affiliate of New York-headquartered investment company KKR.
Sempra chief executive and chairman Jeffrey Martin said in a statement: “As an investor with a global footprint, we expect ADIA will help our team build out a growth platform with an increasingly global capability.”
He added that “the timing of the transaction is attractive because it allows us to efficiently rotate capital into a growing set of investment opportunities at our utilities and return capital to our owners in the form of share repurchases. This transaction allows us to do both, while also supporting our balance sheet”.
Khadem AlRemeithi, executive director of ADIA’s real estate and infrastructure department, said the state-owned company saw “tremendous opportunity in the ongoing transformation of global energy markets”.
“In North America, few businesses are as well positioned as Sempra Infrastructure to build the new energy systems for the 21st century,” he added.
United States law firms White & Case and Sullivan & Cromwell acted for Sempra on the deal, while Milbank and Gonzalez Calvillo advised ADIA.
White & Case’s representation was led by New York mergers and acquisitions partners Michael Deyong and Adam Cieply, with Houston-based Rodrigo Dominguez and Mexico City’s Henri Capin-Gally. Advice on tax came from New York partner David Dreier, employment from Henrik Patel, transactions from Arlene Arin Hahn, and the environment from Seth Kerschner. Foreign investments advice came from Washington, DC, partner Farhad Jalinous and energy regulation input from colleague Daniel Hagan, as well as their assorted counsel and associate colleagues.
White & Case also acted on the KKR deal.
This week, a US private equity company made a commitment to a business developing oil fields in Texas.