US Energy Giant Begins Trading on Mexican Stock ExchangeBy Cas Biekmann | Wed, 06/02/2021 - 09:13
Sempra Energy began trading on the Mexican Stock Exchange (BMV) after announcing the results of its exchange offer for shares of its Mexican arm, IEnova, of which Sempra already owned 70.2 percent. With the offer completed, Sempra achieved its goal of acquiring over 95 percent of IEnova’s shares.
"We could not be more excited about our successful exchange offer and the prospect of listing our company's shares on the BMV. Many of Mexico's most successful companies are listed there," said Jeffrey Martin, Chairman and CEO of Sempra Energy. “This is an important step forward in advancing our Sempra Infrastructure platform, which we expect will create scale, unlock portfolio synergies, highlight value and better position the business for growth,” he added.
In December 2020, Sempra Energy offered to exchange every outstanding ordinary share for IEnova that it did not yet own for 0.0323 shares of Sempra Energy’s common stock. Currently IEnova is valued at US$5.81 billion. Because IEnova’s shareholders accepted the offer, Sempra Energy’s ownership interest in IEnova is now 96.4 percent. The company still aims to acquire the remaining 3.6 percent interest as well.
Sempra Energy’s common stock is now traded on the BMV and remains listed in the New York Stock Exchange as well. Business analysts lauded Sempra’s new participation in Mexico’s own stock exchange as a positive sign for investors looking to Mexico’s energy sector.
“Today's announcement advances our financial strength as part of the Sempra Infrastructure platform and bolsters our commitment to investing in the energy infrastructure needed to support Mexico's economic growth and overall success for many years to come,” said Tania Ortiz, CEO of IEnova.
The exchange offer is part of Sempra’s wider plan to bring various parts of the company’s non-utility infrastructure-based portfolio under one simple banner, to be named Sempra Infrastructure. The new platform is meant to be self-funding, combining Sempra Energy’s liquefied natural gas (LNG) export infrastructure with IEnova.
IEnova’s portfolio includes the Energía Costa Azul (ECA) storage and regasification terminal, which was originally constructed to bring liquefied natural gas to the North American market. With its own liquefaction station added to the mix by 2024 and by securing the coveted export permit from the government, ECA could eventually export LNG to markets in Asia. IEnova also has over 1,000MW of renewable energy-based power plants in its portfolio, including the Energía Sierra Juarez wind project, which delivers energy across the Mexico and US borders.
In April, Sempra Energy announced it agreed to sell a non-controlling 20 percent interest in Sempra Infrastructure to KKR, in a deal valued at US$3.37 billion in cash. The deal’s significant cashflow is to be used to fund Sempra Infrastructure’s growth.