Acquisition of InfraREIT by Oncor Approved By Texas PUC
May 10,2019
Oncor Electric Delivery Company LLC (Oncor) and Sempra Energy announced that they have received approval from the Public Utility Commission of Texas (PUCT) for Oncor's acquisition of InfraREIT, Inc. (InfraREIT), and, concurrently, Sempra Energy's acquisition of a 50% limited-partnership interest in a holding company that will own Sharyland Utilities, LP (Sharyland).
PUCT approval was the final regulatory approval needed to complete the transactions.
The transactions involved transmission assets and do not impact distribution service areas.
On Oct. 18, 2018, Oncor and Sempra Energy announced that they entered into agreements whereby Oncor would acquire 100% of the equity interests of InfraREIT, including all the limited-partnership units in its subsidiary InfraREIT Partners, LP, for approximately $1.275 billion, or $21 per share (or partnership unit), excluding certain transaction costs, and, concurrently, Sempra Energy would acquire a 50% limited-partnership interest in a holding company that will own Sharyland for approximately $98 million. Oncor's acquisition of InfraREIT also includes InfraREIT's outstanding debt, which totaled approximately $946 million at March 31, 2019.
As part of the transaction, a subsidiary of InfraREIT will exchange certain assets with Sharyland, with the end result being that, after Oncor's acquisition of InfraREIT, Oncor will own all of InfraREIT's and Sharyland's electric transmission and distribution business in Central, North and West Texas, and Sharyland will own Sharyland and InfraREIT assets in South Texas.