Sempra completes $10B infrastructure stake sale to KKR

Sempra has completed the sale of a 45% equity stake in Sempra Infrastructure Partners to affiliates of KKR in a transaction valued at approximately $10 billion, the company announced Thursday.

The deal includes Canada Pension Plan Investment Board as an indirect investor and gives the KKR led consortium a 65% ownership stake in the infrastructure business. Sempra retains a 25% interest, while an affiliate of Abu Dhabi Investment Authority holds the remaining 10%.

Under the transaction terms, Sempra was set to receive approximately $4.65 billion in cash at closing, subject to adjustments, with additional payments scheduled through 2027 and 2034.

The deferred payments include approximately $4.14 billion in principal accruing 7.5% annual interest through December 2027 and another $1.2 billion accruing interest at rates beginning at 8.5%. Total expected proceeds, including interest through maturity, could reach approximately $11.5 billion.

The transaction is part of Sempra’s effort to simplify its operations and redirect capital toward regulated utilities in Texas and California, where electricity demand is driving additional infrastructure investment.

“This transaction supports our efforts to further simplify the company’s business model while supporting the growth of our utilities in Texas and California,” said Sempra CEO Jeffrey Martin.

Sempra Infrastructure Partners operates liquefied natural gas export facilities and related energy infrastructure across North America.

The closing follows Sempra Infrastructure’s sale of Ecogas México in August and supports the company’s broader capital recycling strategy.

Sempra previously reported third quarter adjusted earnings of $917 million, up from $728 million a year earlier, while its Texas utility Oncor projected a roughly 20% increase in its next five year base capital investment plan.