Sempra To Sell 45% Stake In Infrastructure Unit To KKR In $10 Billion Deal

Sempra Energy (SRE) announced on Tuesday that it has agreed to sell a 45% stake in its Sempra Infrastructure Partners unit to affiliates of KKR (KKR) and the Canada Pension Plan Investment Board. 

Sempra’s stock gained as much as 3.7% in pre-market trade. However, retail sentiment on Stocktwits remained in ‘neutral’ territory amid ‘high’ levels of chatter over the past day. Meanwhile, KKR’s stock edged 0.2% lower, with retail sentiment on Stocktwits in ‘bearish’ territory amid ‘high’ levels of chatter.

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, the company said. 

The deal values Sempra Infrastructure Partners at an implied equity value of $22.2 billion and an enterprise value of $31.7 billion, with total proceeds of roughly $10 billion. Under the transaction terms, Sempra is expected to receive 47% of the cash at closing, 41% by the end of 2027, and the remaining balance about seven years after the deal closes. 

The company stated that this schedule enables it to “generate attractive post-closing interest income as it efficiently reinvests proceeds over time in capital expenditures at its U.S. utilities.”

The company expects the deal to close in the second or third quarter of 2026. Upon completion, the KKR-led consortium will hold a majority 65% equity stake in Sempra Infrastructure Partners. Sempra will retain a 25% interest, while the Abu Dhabi Investment Authority maintains its existing 10% stake.

"The transactions announced today further Sempra's corporate strategy by advancing the company's capital recycling program and transition to a leading U.S. utility growth business," said Sempra CEO Jeffrey W. Martin.

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