(Reuters) - Energy infrastructure company Sempra Energy (NYSE:SRE) said on Monday it would sell a 20% stake in its new business platform, Sempra Infrastructure Partners, to investment firm KKR for $3.37 billion in cash.
The sale was flagged by Sempra in December and comes as the company sharpens its focus on renewables and energy storage to capitalize on the growing global demand for cleaner fuels. (https://reut.rs/3rTE7Do)
Sempra last year late last year agreed to buy the remaining stake in its Mexican unit Infraestructura Energética Nova SAB de CV (IEnova).
The company then said it would combine IEnova with its North American liquefied natural gas export infrastructure unit, Sempra LNG, under a new unit called Sempra Infrastructure Partners to focus on the development and construction of North American LNG export and natural gas infrastructure.
The deal announced on Monday values Sempra Infrastructure Partners at about $25.2 billion, including expected asset-related debt at closing of $8.37 billion, the company said in a statement.
Proceeds from the sale will be used to help fund growth across Sempra Energy's $32 billion capital program, which is centered on its U.S. utilities.
The sale is expected to add to the company's earnings and is likely to close by mid-2021.