Sempra will sell a non-controlling 10% interest in Sempra Infrastructure Partners (Sempra Infrastructure) to a subsidiary of the Abu Dhabi Investment Authority (ADIA) for US$1.8bn (US). Sempra will therefore own a 70% controlling stake in Sempra Infrastructure since it already sold a 20% non-controlling interest in Sempra Infrastructure to a wholly owned affiliate of KKR.
Sempra Infrastructure was created earlier this year through the consolidation of two infrastructure companies: Sempra LNG and Infraestructura Energética Nova, S.A.B de C.V. (IEnova). The combined business consists of three growth platforms, namely clean power, energy networks, and LNG and net-zero solutions.
The transaction is expected to be completed in the summer of 2022, subject to customary closing conditions and consents from regulators. Under the terms of the agreement, ADIA will have certain customary minority rights with respect to Sempra Infrastructure, commensurate with the size of the investment.
Proceeds from the sale will be used to help fund incremental capital expenditures at Sempra's utilities, repurchase US$500m of the company's stock, and supporting the company's balance sheet.