San Diego-based energy company and LNG operator Sempra Energy has agreed to acquire Energy Future, the indirect owner of 80 percent of Oncor Electric Delivery Company in Texas.
Under the agreement, Sempra Energy will pay approximately $9.45 billion in cash to acquire Energy Future and its ownership in Oncor.
Sempra informed in its statement that the enterprise value of the transaction is approximately $18.8 billion, including the assumption of Oncor’s debt.
Sempra Energy expects to fund the $9.45 billion transaction using a combination of its own debt and equity, third-party equity, and $3 billion of expected investment-grade debt at the reorganized holding company.
At the completion of the transaction, Bob Shapard, Oncor’s CEO, will become executive chairman of the Oncor board of directors and Allen Nye, currently Oncor’s general counsel, will succeed Shapard as Oncor’s CEO.
Sempra Energy expects the transaction to be completed in the first half of 2018.