KKR to buy stake worth $3.37bn in Sempra Infrastructure Partners

US-based Sempra Energy has signed an agreement to divest a 20% stake in its new business platform, Sempra Infrastructure Partners, to investment firm KKR for $3.37bn.

The deal values Sempra Infrastructure Partners at around $25.2bn. This includes an anticipated asset-related debt of $8.37bn at the closing.

Sempra Energy said that the deal forms part of its efforts to simplify its non-utility infrastructure investments under a single self-funding platform to fuel growth and unlock portfolio synergies.

The new unit combines Sempra LNG, a developer of LNG export infrastructure, and Infraestructura Energética Nova (IEnova), which is engaged in developing renewables and natural gas infrastructure in Mexico.

Under the terms of the deal, KKR will acquire Sempra Energy’s indirect interest in IEnova by issuing $4.13 per share.

Sempra Energy chairman and CEO Jeffrey Martin said: “Over the next decade, we expect the energy markets in North America to continue to grow and become increasingly integrated.

“Combining our resources with KKR improves our ability to capture new investment opportunities in cleaner forms of energy and the critical infrastructure that stores and transports it.”

Sempra Energy plans to use the proceeds from the deal to further consolidate its balance sheet and fund growth across its $32bn capital programme.

KKR Partner and Infrastructure global head Raj Agrawal said: “This infrastructure platform provides a strong foundation to expand cleaner energy resources across the continent.

“Backed by strong, contractually-supported, long-term cash flows, our investment is also consistent with KKR Infrastructure’s strategy to seek stable and predictable returns for our investors.”

Subject to customary closing conditions, the deal is expected to conclude in the first of this year.

In December last year, Sempra Energy announced plans to create the new business platform.