Court Approves Sempra Energy’s Merger Agreement With EFH
September 07,2017
Sempra Energy announced that the U.S. Bankruptcy Court for the District of Delaware (Bankruptcy Court) has approved the merger agreement that Energy Future Holdings Corp. (Energy Future) entered into with Sempra Energy on Aug. 21, 2017.
Sempra said that such approval is an important step in Sempra Energy's proposal to acquire Energy Future's 80-percent ownership interest in Oncor Electric Delivery Company, LLC (Oncor).
The Oncor acquisition remains subject to approval by the Public Utility Commission of Texas
Sempra said that Oncor and Sempra Energy are expected to file a joint application with the Public Utility Commission of Texas in October for approval of the transaction.
Sempra Energy will pay approximately $9.45 billion in cash to acquire Energy Future and its 80-percent ownership interest in Oncor. Sempra Energy expects its equity ownership after the transaction will be approximately 60 percent of Energy Future.
In addition to approving Energy Future's entry into the Sempra Energy merger agreement, the Bankruptcy Court's order approved the debtors' plan support agreement with Sempra Energy and certain affiliates of Elliott Capital Management (Elliott), which hold a majority of the claims against the debtors. Under the plan support agreement, the debtors and Elliott have agreed to take all action that is reasonably necessary to implement the merger agreement, and Elliott has agreed to support the transaction and to vote its claims to accept the plan. In a separate order, the Bankruptcy Court also authorized the debtors to solicit votes on the plan.