Sempra's Mexican Unit IEnova Sells Shares to Fund Expansion
October 14 2016 - 11:58AM
Dow Jones News
By Anthony Harrup
MEXICO CITY -- The Mexican unit of Sempra Energy raised around
$1.43 billion in a capital increase and will use the money to pay
for recent acquisitions in the gas and electricity sectors, the
company said Friday.
Infraestructura Energética Nova SAB, or IEnova, priced 344.9
million shares at 80 Mexican pesos ($4.22) per share in a global
offering, of which about a third was sold in Mexico and the rest
internationally.
An additional 35.1 million shares in overallotments can be
exercised over the next month. The share offering including the
overallotments is equivalent to about 24.8% of IEnova.
San Diego-based Sempra Energy participated in the capital
increase, agreeing to buy shares for $350.7 million. Net proceeds
to IEnova, excluding the overallotments, are estimated at $1.43
billion.
IEnova will use the money to repay bridge financing for its
recent $1.14 billion acquisition of state oil company Petróleos
Mexicanos' 50% stake in pipeline joint-venture Gasoductos de
Chihuahua, which is now wholly owned by IEnova. It will also use
funds to partly finance the acquisition of two wind farms in
northeastern Mexico, which it recently agreed to buy for $375
million plus the assumption of $477 million in debt.
Shares in IEnova, the only pure energy play on the Mexican stock
exchange, were gaining 2.5% to 82.90 pesos in early trading
Friday.
IEnova is also developing new projects. It owns 40% of a
joint-venture with TransCanada Corp. that won a contract from
Mexico's state electric utility to build a 500-mile, $2.1 billion
offshore pipeline to carry natural gas from South Texas to
northeastern Mexico. And at an auction last month, it won long-term
contracts to supply electricity from two solar power plants in
which it will invest about $150 million.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
October 14, 2016 11:43 ET (15:43 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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