Sempra Energy Reworks Energy Future Holdings Acquisition

Sempra Energy (SRE) was narrowly lower in extended trading Wednesday night after the utility company said it will file a joint change-in-control application tomorrow with the Texas Public Utility Commission for its proposed acquisition of privately held Energy Future Holdings Corp. (EFH) and its 80% owned Oncor electricity merchant company.

The application will include 47 regulatory commitments along with a new financing plan calling for Sempra to acquire all of Energy Future Holdings with no outside equity investors or taking on any new debt through the target company.

Sempra said it now expects to fund around 65% of the $9.45 billion purchase price with its equity and the remaining 35% with company debt. Originally, Sempra had expected to acquire only 60% of Energy Future with plans to buy the rest of the company over time.

Sempra also said the revised transaction structure will increase its earnings by between $0.10 to $0.20 per share on an annualized basis over the next four years, depending on the timing of the deal closing and exact mix of issued equity and debt.

By Kristin Senesi