June 28, 2018 / 10:45 AM / a year ago

Sempra Energy to sell U.S. storage, renewable energy assets

FILE PHOTO: Sempra Energy headquarters is pictured in downtown San Diego, California, U.S., May 17, 2018. REUTERS/Mike Blake

(Reuters) - U.S. utility Sempra Energy (SRE.N) said on Thursday it plans to sell some of its natural gas storage and renewable energy assets and expects to record a charge between $1.47 billion and $1.55 billion during the second quarter.

Earlier this month, activist investors Elliott Management and Bluescape Resources Co, who have a combined stake of 4.9 percent in Sempra, pushed for a board shakeup and strategic review at the company.

The activist investors presented the company with a plan to sell its international business lines and split into two companies through a tax-free spinoff - one focused on utilities and the other on natural gas infrastructure.

The assets being sold include two of Sempra's natural gas storage hubs in Mississippi and Alabama, as well as all of its wind and solar assets in the United States. (bit.ly/2tHAIeY)

Sempra said the plan to sell the assets resulted from a recent strategic review and added it would continue to evaluate the strategic fit of its remaining businesses.

Reporting by Karan Nagarkatti in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber

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