Sempra Unit IEnova Tweaks Pemex Pipeline Deal
July 12 2016 - 5:40PM
Dow Jones News
By Anthony Harrup
MEXICO CITY -- The Mexican unit of Sempra Energy said Tuesday
that it has restructured an agreement to buy state oil company
Petróleos Mexicanos's stake in a pipeline joint-venture to comply
with antitrust requirements.
Infraestructura Energética Nova SAB, or IEnova, said it would
pay at least $1.11 billion for Pemex's 50% stake in Gasoductos de
Chihuahua, a 50-50 pipeline joint-venture between the two
companies. Initially, the deal was valued at $1.33 billion, or $1.5
billion including the assumption of debt.
The Economic Competition Commission blocked the deal in
December, saying Pemex had to offer two of the assets in the joint
venture -- a natural-gas pipeline and a propane-gas pipeline in
northeastern Mexico -- in a competitive tender process.
Other Gasoductos de Chihuahua assets include the Samalayuca
natural-gas pipeline in Chihuahua state, an ethane pipeline in
southeastern Mexico and a propane-gas terminal in Guadalajara.
Ienova said the changes in the arrangement will allow Pemex to
comply with the antitrust ruling and allow the deal to go ahead,
which it expects in the third quarter. IEnova operates natural-gas
pipelines, natural-gas distribution networks, a liquefied
natural-gas terminal and a power plant in Mexico.
The Banorte-Ixe brokerage said progress on the transaction is
positive, since it sees the acquisition as one of the main
short-term catalysts for earnings growth at Ienova.
Ienova has said it could issue debt or shares to finance the
acquisition. Its shareholders approved a capital increase last
September. Its shares closed down 0.9% on the Mexican stock
exchange Tuesday, and are down 4% in the past year.
For Pemex, which has had to cut its budgets because of lower oil
prices, the sale will free up cash for other projects.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
July 12, 2016 17:25 ET (21:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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