US-based Sempra eyes takeover of Mexican counterpart
Sempra Energy, a US-based energy infrastructure company, announced April 26 it has launched an effort to acquire all of IEnova, its Mexican counterpart, that it doesn’t already own.
“Sempra Energy is offering to exchange each outstanding IEnova ordinary share that it does not directly or indirectly own for 0.0323 shares of Sempra’s common stock,” the company said.
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In a prospectus associated with the announcement, Sempra said the main purpose of the exchange offer is to take control of all of the outstanding stock in IEnova owned by public investors.
If sanctioned, Sempra, which also controls a handful of utility companies in California, would request that relevant authorities delist IEnova from the Mexican Stock Exchange, ending its existence as a publicly-traded company.
“As part of the Sempra Energy family of companies, IEnova has delivered critical energy infrastructure to the country of Mexico for over two decades, supporting economic growth and the health and prosperity of millions,” Sempra Energy CEO Jeffrey Martin said. “We look forward to building on that track record of success and collaboration.”
Sempra in the prospectus said that it believed the exchange offer is a fair and attractive one for IEnova shareholders.
In November, the Sempra LNG announced it would work with IEnova on a proposed LNG export facility, Energia Costa Azul, in northwestern Mexico. Sempra at the time touted the facility as the first such project to have the potential for approval under the US-Mexico-Canada trade agreement, a retooled version of the North American Free Trade Agreement.
If built, it would also be the first LNG export terminal that would connect to natural gas reserves in western US states such as Texas and New Mexico, which host parts of the Permian shale basin.
The offer for IEnova, which is set to expire May 24, is part of an effort that began in December for Sempra to streamline its non-utility components under one self-funding platform dubbed Sempra Infrastructure Partners. That effort is meant to combine Sempra’s LNG segment with IEnova’s.
Sempra in early April sold a 20% stake in Sempra Infrastructure Partners to investment firm KKR for $3.37bn in cash as part of that effort.
Sempra LNG also owns a majority stake in the Cameron LNG export facility in Louisiana.