Summary
Sempra Energy (SRE) announced the completion of a significant transaction on October 1, 2021, involving the sale of a 20% equity interest in its subsidiary, Sempra Infrastructure Partners (formerly Sempra Global), to an affiliate of Kohlberg Kravis Roberts & Co. L.P. (KKR). This transaction, valued at $3.37 billion subject to adjustments, represents a strategic move to monetize a portion of its infrastructure assets while retaining majority control. Sempra Infrastructure Partners will now house Sempra's liquefied natural gas business and its substantial stake in IEnova. The formation of a limited partnership agreement with KKR outlines the governance structure, with Sempra maintaining operational control as the 80% owner, while KKR receives certain minority protections. This deal, originally agreed upon in April 2021, was finalized after Sempra completed its acquisition of remaining IEnova shares, which influenced the final purchase price for KKR's stake.
Key Highlights
- 1Sempra completed the sale of a 20% equity interest in Sempra Infrastructure Partners to KKR for $3.37 billion.
- 2Sempra Infrastructure Partners will consolidate Sempra's LNG business and its stake in IEnova.
- 3Sempra retains a controlling 80% ownership in Sempra Infrastructure Partners.
- 4A Limited Partnership Agreement has been established to govern the partnership with KKR.
- 5The transaction was completed pursuant to a purchase and contribution agreement dated April 4, 2021.
- 6The final purchase price was influenced by Sempra's acquisition of remaining IEnova shares.