The sale comes after pressure from activist Wall Street investors, who claimed the San Diego-based utility holding company’s stock was undervalued. But Sempra said the decision was based on a year-long strategic review.
“This sale represents an important step forward in the portfolio-optimization plan we announced in June to support market growth opportunities,” said Joseph A. Householder, president and chief operating officer of Sempra Energy. “We plan to work closely with Consolidated Edison to ensure a smooth transition.”
On June 28, a month after Elliott Management and Bluescape Energy Partners accused the company of being “deeply undervalued,” Sempra said it would sell its renewable energy business. On Monday, the company announced an agreement with the Wall Street investors to restructure its board of directors.
The assets included in the sale to Consolidated Edison are in Arizona, Nevada, Nebraska and California. They comprise 980 megawatts of generating capacity and are not part of Sempra’s operating utilities such as San Diego Gas & Electric.
Sempra’s stock closed at $114.32 on Thursday, up 8 cents per share.
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