After acquiring a majority stake in Dallas-based Oncor earlier this year, San Diego-based Sempra Energy wants to build on its investment in Texas.
Sempra’s Oncor unit said on Oct. 18 that it entered an agreement to acquire 100 percent of publicly traded InfraREIT for $1.275 billion. In doing so, Oncor would assume approximately $971 million in debt.
InfraREIT owns electric transmission infrastructure in several parts of Texas. Oncor’s offer of $21 per share is in line with how InfraREIT shares have been trading in October. Listed on the New York Stock Exchange as HIFR, InfraREIT shares traded hands over the month for prices that ranged from $20.12 and $21.52.
In March, Sempra (NYSE: SRE) closed its acquisition of 80.25 percent of Oncor Electric Delivery Co. LLC.
Sempra said it planned to use funds from asset sales to fund its capital contribution of approximately $1.025 billion to Oncor.
Also on Oct. 18, Sempra said it planned to acquire a 50 percent stake in Sharyland Utilities, an electric transmission company with lines in several areas of Texas, for $98 million. The balance is owned by the Hunt Family of Texas. The two plan to co-invest in Sharyland’s South Texas utility business.
The deals need approval from the Public Utility Commission of Texas and the Federal Energy Regulatory Commission. If all conditions are met, Oncor and Sempra expect the transaction to close in mid-2019.