U.S. natural gas company Sempra Energy and electric utility transmission and distribution firm Oncor Electric Delivery Company LLC announced that they have entered into agreements whereby Oncor will acquire 100 percent of the equity interests of real estate investment trust InfraREIT, Inc., including all the limited-partnership units in its subsidiary InfraREIT Partners, LP, for approximately $1.275 billion, or $21 per share, excluding certain transaction costs.
Sempra Energy, which owns an approximate 80 percent ownership stake in Oncor, expects to utilize the proceeds from pending asset sales to fund its capital contribution of approximately $1.025 billion to Oncor and also to purchase the 50 limited-partnership interest in a holding company that will own public electric utility company Sharyland Utilities, LP for approximately $98 million.
Sempra Energy said that the transaction advances its growth strategy and will expand its Texas regulated utility platform.
Oncor added that the purchase of InfraREIT gives it access to high-quality transmission assets that are adjacent to the company’s service territory and are a great fit for its portfolio.