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Sempra Energy has announced that it has entered into an agreement to complete the sale of its U.S. renewables business by selling its remaining wind operating and development assets to American Electric Power (AEP) for US$551 million in cash, subject to closing adjustments and working capital.
This follows agreements to sell solar and natural gas assets, announced in September 2018 and January 2019, respectively. Altogether, these sales are expected to generate approximately US$2.5 billion in cash proceeds for Sempra Energy.
The agreement to sell the remainder of Sempra Renewables, a subsidiary of Sempra Energy, comprises approximately 724 MW of capacity. It includes the Black Oak Getty Wind project in Minnesota and the Apple Blossom Wind project in Michigan, as well as the company's interests in the following projects jointly owned with BP Wind Energy:
AEP also will acquire all of Sempra Renewables' wind projects currently in development.
The sale is expected to be completed in the second quarter of 2019, subject to customary closing conditions and consents, including Federal Energy Regulatory Commission and Hart-Scott-Rodino Antitrust Improvements Act approvals.
Credit Suisse and J.P. Morgan are serving as Sempra Energy's lead financial advisors on the sale and Latham & Watkins LLP is serving as its legal advisor.