Sempra to sell 10% stake in unit to Abu Dhabi wealth fund for about $1.8 bln

Dec 21 (Reuters) – Energy infrastructure company Sempra Energy (SRE.N) said on Tuesday it would sell a 10% stake in its business platform, Sempra Infrastructure Partners, to a unit of the Abu Dhabi Investment Authority (ADIA) for $1.79 billion in cash.

The deal implies an enterprise value of $26.5 billion for the unit, according to Sempra, which has been focusing more on renewables and energy storage to cater to the growing global demand for cleaner fuels.

The company also said it would use proceeds from the sale to finance capital expenditures at its utilities and buy back shares worth $500 million.

Sempra Energy expects the deal with the United Arab Emirates’ biggest sovereign wealth fund to close next year, after which it would hold a 70% stake in Sempra Infrastructure.

In April, the company had agreed to sell a 20% stake in the unit to investment firm KKR (KKR.N) for $3.37 billion. read moreReporting by Ruhi Soni in Bengaluru; Editing by Ramakrishnan M.

Our Standards: The Thomson Reuters Trust Principles.

This article was originally published by Reuters.

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