Summary
Sempra Energy, through its indirect wholly owned subsidiary Sempra Solar Portfolio Holdings, LLC, has entered into a definitive agreement to sell its wholly owned subsidiary, Sempra Solar Holdings, LLC, to CED Southwest Holdings, Inc. (a subsidiary of Consolidated Edison, Inc.). This transaction involves the sale of membership interests in entities that own a portfolio of solar and wind generation facilities and development-stage renewable assets located in the United States. Notably, these assets are distinct from Sempra's regulated utility operations in California and Texas. The aggregate base purchase price for this transaction is $1.54 billion, subject to customary adjustments. The sale is expected to close around the end of 2018, pending the satisfaction of several closing conditions, including regulatory approvals from relevant authorities (HSR, FERC, DOE) and other standard conditions. The divestiture aligns with Sempra's strategic objectives, potentially allowing the company to focus resources on other core areas.
Key Highlights
- 1Sempra Energy is selling its subsidiary, Sempra Solar Holdings, LLC, which owns renewable energy generation facilities and development-stage assets in the U.S.
- 2The buyer is CED Southwest Holdings, Inc., a subsidiary of Consolidated Edison, Inc.
- 3The aggregate base purchase price for the transaction is $1.54 billion, subject to adjustments.
- 4The sale includes solar and wind generation facilities, as well as development-stage solar and energy storage assets.
- 5The assets being sold are not part of Sempra's regulated utility businesses in California or Texas.
- 6The transaction is expected to close by the end of 2018, subject to customary closing conditions, including regulatory approvals.
- 7Sempra Energy provided a limited payment guarantee regarding its subsidiary's obligations under the purchase agreement.