US-based company Sempra Energy has unveiled plans to acquire the remaining stake in Infraestructura Energética Nova (IEnova) through a stock for stock exchange process.
The move is part of a larger plan that seeks to simplify its energy infrastructure investments under one platform to fuel growth and unlock portfolio synergies.
Sempra Energy will acquire all outstanding IEnova shares that are currently not owned by the company at an exchange ratio of 0.0313.
According to a Reuters report, the deal values at $6.13bn.
IEnova offers natural gas storage, pipelines and distribution services in Mexico. At the end of last year, the company had around $9.6bn of assets and more than 1,300 employees.
As part of the deal, Sempra also intends to list its exchange shares on the Mexican stock exchange.
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By GlobalDataThe company has already presented a non-binding offer to IEnova and filed a preliminary prospectus and exchange offer documents with the Mexican National Banking and Securities Commission to facilitate the transaction.
The deal is expected to complete by the end of the first quarter 2021, subject to regulatory approvals and other customary conditions.
Once complete, Sempra Energy plans to combine IEnova and its Sempra LNG to form a new unit called Sempra Infrastructure Partners to bolster its business in North America.
Specifically, the new unit will focus on the development of LNG export infrastructure, natural gas infrastructure and renewable energy generation.
The company will also sell a non-controlling interest in Sempra Infrastructure Partners to fund growth.
Sempra Energy chairman and CEO Jeffrey W Martin said: “By focusing on the critical need for new energy infrastructure right here in North America, both Sempra LNG and IEnova have created a significant pipeline of development projects that are expected to provide differentiated growth for decades to come.
“More importantly, this will provide an improved platform for innovation and potential new investments in renewables, hydrogen, energy storage and carbon sequestration.”
