Sempra Energy has signed a deal with activist investors Elliott Management Corp. and Bluescape Energy Partners LLC, agreeing to seat two new board members among other provisions.
In a statement issued Sept. 18, Sempra (NYSE: SRE) said it and the activist investors also agreed to modify Sempra’s oversight of its liquefied natural gas (LNG) business. It broadened the scope of the board’s LNG Construction and Technology Committee. Renamed as the Business Development Committee, the panel will conduct a comprehensive review of the company’s businesses and publicly present its findings in the first quarter of 2019.
Elliott and Bluescape own 4.9 percent of Sempra Energy. The activists' combined stake is worth $1.6 billion.
Elliott and Bluescape went public with a detailed critique of Sempra in June, saying the company was too diversified. The activist investors called on Sempra to immediately seat six new board members of the activists’ choosing, spin off its LNG business to shareholders and sell other businesses.
In the coming weeks, Sempra said, it will seat two new board members mutually agreeable to the company and the activist shareholders. The two new directors will sit on the committee reviewing Sempra’s business.
Separately, Sempra announced on Sept. 14 that Lisa Glatch is joining the company in the newly created position of strategic initiatives officer. Glatch was previously executive vice president and chief strategic development officer for CH2M, a consulting and program management firm. Glatch, who holds a degree in chemical engineering, also worked for Jacobs and Fluor Corp., both engineering and construction firms.