Energy Future Drops Berkshire Bid For Sempra's $9.45B Offer

Paterniano Del Favero
Agosto 22, 2017

Bankrupt Texas utility Energy Future Holdings is set to accept a $9.45-billion bid for Oncor by Sempra Energy as against Warren Buffett's Berkshire Hathaway Inc, which offered $9 billion, according to people close to familiar with the matter, Reuters reported.

"Our proposal will help bring a satisfactory resolution to Energy Future's bankruptcy case, keep Oncor financially strong, and protect Oncor customers, while addressing the needs of Texas regulators, creditors and the U.S. Bankruptcy Court", Sempra CEO Debra Reed said in a news release.

The board of Energy Future chose to make the switch yesterday after Sempra also offered assurances it could get its acquisition of Oncor approved by the Public Utility Commission of Texas (PUCT), as also a United States bankruptcy judge, according to the sources.

Sempra will take control of Oncor by buying a reorganized Energy Future out of bankruptcy.

But Energy Future's biggest creditor, Elliott Management Corp., opposed Buffett's offer, arguing it undervalued Oncor.

Berkshire Hathaway last month offered $9 billion for Oncor.

Sources told Reuters earlier that Sempra had decided to make an offer for Oncor in the last three weeks, after seeing the opposition that Berkshire faced from Elliott.

Sempra Energy said it expects the deal to be completed in the first half of 2018 and to add to earnings beginning next year.

Bob Shapard, Oncor's CEO, will become executive chairman of the Oncor board of directors and Allen Nye, now Oncor's general counsel, will succeed Shapard as Oncor's CEO.

Sempra owns San Diego Gas & Electric and Southern California Gas and boasts a market value of about $30 billion, much lower than cash-rich Berkshire's.

Altre relazioni OverNewsmagazine

Discuti questo articolo

SEGUI I NOSTRI GIORNALE