Sempra Expects to Close $10 Billion Infrastructure Stake Deal Within Two Weeks
Key Facts
Sempra said on November 5, 2026, that the sale of a 45% stake in Sempra Infrastructure Partners to KKR affiliates remains on track, with closing expected within the following two weeks. The disclosure sets a nearer timeframe for completing the agreement, announced in 2025, after closing had been expected in the third quarter of 2026. The company said the sale is part of a capital recycling program and an effort to simplify its business model. Chief Executive Jeffrey Martin said the move is intended to support growth in the company's utilities in Texas and California and strengthen its financial position. That means the transaction's completion would place a greater share of Sempra's investment focus on its regulated utility businesses, according to the company.
The announced proceeds from the deal total $10 billion, a value that, according to Sempra's estimates and subject to adjustments, equates to implied equity value of $22.2 billion and enterprise value of $31.7 billion for the partnership. Not all of the consideration is paid in cash at closing: the original agreement provides for $4.65 billion in cash at that time. It also includes $4.14 billion, plus quarterly compounding interest at an annual rate of 7.5%, due on December 31, 2027. The deal also includes promissory notes with a principal amount of $1.2 billion, due 7 years and 91 days after closing. The notes carry quarterly compounding interest at an annual rate of 8.5% before January 1, 2031, rising to 10.0% annually from that date onward.
Under the announced ownership structure, a consortium led by KKR will become the largest owner of Sempra Infrastructure Partners, with a 65% stake after closing. Sempra will retain a 25% stake, while the Abu Dhabi Investment Authority's stake will remain at 10%. CPP Investments announced on September 23, 2025, that it had agreed to buy an indirect ownership stake of approximately 13% in Sempra Infrastructure Partners for about $3 billion, alongside KKR affiliates. That stake reflects the Canadian investor's participation in the original agreement, while the November 5 disclosure specifies that the sale currently on track is to KKR affiliates. Completion of the deal, expected within the two weeks following the November disclosure, remains the step needed to implement the announced ownership structure.
Sempra also announced its adjusted third-quarter results, with earnings of $917 million, or $1.40 per diluted share, compared with $728 million and $1.11 per share in the same quarter of 2025. In the first nine months of 2026, the company posted adjusted earnings of $2.670 billion, or $4.07 per diluted share. Adjusted earnings in the corresponding period of 2025 were about $2.253 billion, or $3.45 per share. The results put the deal in the context of the company's performance during the period in which it reaffirmed the expected closing date. Sempra shares, which trade under the ticker SRE, closed at $79.83 on November 5, while KKR shares closed at $98.30 in the same session.
In the utilities sector, Oncor expects to increase its base capital spending plan for 2027–2031 by about 20% compared with its plan for 2026–2030. Sempra attributed the expected increase to reliability investments and load growth in the ERCOT market. Martin said the company looks forward to completing the stake sale to support strong growth in its utilities in Texas and California and strengthen its financial position. Sempra intends to finalize its 2027–2031 capital plan and announce it during its fourth-quarter earnings call in February 2027. That forthcoming announcement would place the next spending plan after the deal's expected closing window, according to the timeline announced by the company.