Sempra stock rises on $10 billion sale of interest in infrastructure business
Dante Ulanday - News Moderator 
Seeking to simplify its business model, San Diego-based Sempra announced Tuesday the sale of 45% interest in its infrastructure business to private-equity giant KKR for $10 billion.
The utility holding company’s stock closed up nearly 5% on the New York Stock Exchange.
Sempra’s infrastructure unit operates liquefied natural gas terminals, gas pipelines, and clean energy solar and wind generating facilities.
Jeffrey W. Martin, chairman and CEO of Sempra, said the sale is “designed to simplify our business, efficiently fund strong utility growth in Texas and California and improve our financial strength.”
He added that the transaction “underscores our commitment to extend our strategic partnership with KKR, with whom we have a shared vision of improving America’s position as a global leader in LNG exports.”
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 and the Abu Dhabi Investment Authority 10%.
Sempra said that after the transaction approximately 95% earnings will come from regulated U.S. utilities, while the proceeds eliminate the need for future equity issuances to fund capital improvements.
