Sempra Energy sell 45% interest in Sempra Infrastructure Partners for $10B

Sempra (SRE) announced that it has agreed to sell a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR (KKR), with Canada Pension Plan Investment Board. Subject to adjustments, the transaction proceeds of $10B implies an equity value of $22.2 billion and an enterprise value of $31.7B for Sempra Infrastructure Partners. Before adjustments, Sempra is expected to receive 47% of the cash at close, 41% by year-end 2027 and the balance approximately seven years after closing. This schedule helps Sempra generate attractive post-closing interest income as it efficiently reinvests proceeds over time in capital expenditures at its U.S. utilities. The transaction is expected to close in Q2 – Q3 2026, subject to necessary regulatory and other approvals and closing conditions. Upon closing, a KKR-led consortium will become the majority owner of Sempra Infrastructure Partners, holding a 65% equity stake, while Sempra will retain a 25% interest alongside Abu Dhabi Investment Authority’s existing 10% stake. Under the terms of the agreement, Sempra and ADIA will have certain minority rights in Sempra Infrastructure Partners.