Summary
Sempra (SRE) announced the completion of a significant transaction involving its subsidiary, Sempra Infrastructure Partners, LP. The company sold a 10% stake in Sempra Infrastructure to Black Silverback ZC 2022 LP, an affiliate of the Abu Dhabi Investment Authority, for $1.73 billion. This move diversifies Sempra's ownership structure for its infrastructure arm and brings in a substantial capital infusion. Following this minority interest sale, Sempra, the new partner (along with KKR), and the subsidiary entered into an amended limited partnership agreement. While Sempra maintains controlling ownership (70%), the agreement includes specific minority protections for the new partners. Investors should view this as a strategic move to accelerate growth and potentially reduce balance sheet leverage for Sempra Infrastructure, while Sempra retains operational control.
Key Highlights
- 1Sempra completed the sale of a 10% interest in Sempra Infrastructure to an Abu Dhabi Investment Authority affiliate for $1.73 billion.
- 2The transaction diversifies the ownership of Sempra Infrastructure.
- 3The sale was executed under a previously announced purchase agreement from December 21, 2021.
- 4A new amended agreement governs the partnership structure and rights of Sempra and the minority partners.
- 5Sempra retains majority control of Sempra Infrastructure with a 70% ownership stake.
- 6Minority protection provisions are included in the new partnership agreement for the other partners.
- 7This transaction likely provides capital for Sempra Infrastructure's growth initiatives and potentially strengthens Sempra's overall financial position.