KKR to Buy $10 Billion Stake in Sempra’s Infrastructure Arm
(Bloomberg) -- Sempra agreed to sell a 45% equity stake in its infrastructure arm to affiliates of KKR and Canada Pension Plan Investment Board for $10 billion, a deal that will boost the percentage of its earnings from regulated utilities.
The sale of the Sempra Infrastructure Partners interest will help strengthen Sempra’s credit profile and improve its business mix “with a goal of approximately 95% earnings from regulated US utilities,” and it eliminates the need for previously announced equity issuances, it said in a statement Tuesday.
Sempra shares rose 3.4% in pre-market trading.
The deal comes as Blackstone said it would lead a $7 billion investment in Sempra’s Port Arthur LNG Phase 2, acquiring a 49.9% minority equity interest in the project. The second phase of the export facility is currently under construction in Texas, and Sempra announced the final investment decision on Tuesday.
After decades of flat demand growth, the increasing need for electricity to run data centers has boosted profitability for utilities and power companies, transforming a sector previously thought of as reliable and slow-moving.
The deal is expected to close in the second or third quarter of 2026, subject to regulatory approvals. After closing, a KKR-led consortium will become the majority owner of Sempra Infrastructure Partners, holding a 65% equity stake, while Sempra will retain a 25% interest alongside Abu Dhabi Investment Authority’s existing 10% stake.
Sempra is expected to receive 47% of the cash at close, 41% by year-end 2027 and the balance about seven years after closing, according to the statement.
(Updates with information on Blackstone investment in fourth paragraph.)
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