Sempra Energy bids $9.45B for Oncor, topping Buffett offer

22 August, 2017, 01:09 | Author: Valerie Burke
  • Five Texas Stakeholder Groups Reach Agreement in Berkshire Hathaway Energy's Acquisition of Oncor

Elliott previously attempted to put its own $9.3 billion bid together for Oncor, but has now told Reuters it is supportive of Sempra's bid. Berkshire issued a statement last week saying it had no plans to raise its offer for Oncor.

In July, the energy unit of Berkshire Hathaway agreed to buy Oncor for $9 billion, but the deal ran into trouble after Energy Future's biggest creditor Elliott Management Corp opposed the sale arguing it undervalued Oncor.

Last week, the hedge fund appeared to have found a way to stymie Berkshire's bid by acquiring a particular class of Energy Future's debt that effectively let it veto Mr. Buffett's offer.

Sempra's deal for Energy Future Holdings Corp., which owns 80 percent of Oncor, is valued at about $18.8 billion including debt, the San Diego-based company said in a statement dated August 20. We believe our agreement with Energy Future will help ensure that Texas utility customers continue to receive the outstanding electric service they have come to expect from Oncor and provide stability to Oncor's almost 4,000 employees. Sempra said it has received financing commitments from RBC Capital Markets and Morgan Stanley, with Sempra expected to hold about 60% of the reorganized company.

The company took part in a leverage buyout in 2007 and when energy prices started falling, the company's fortunes went downhill.The company filed for bankruptcy in April 2014, citing $40 billion in debt. Buffett is known for avoiding bidding wars.

Energy Future's board favored Sempra's bid after it also offered assurances it could get its acquisition of Oncor approved by Public Utility Commission of Texas, as well as a USA bankruptcy judge, the sources said.

Kurt Angle And Daniel Bryan Scouting Talent At NXT Takeover: Brooklynn
I am a bit anxious the superstar shakeup may take a few too many names from NXT too early but Roode is definitely not one of them. The introduction of Adam Cole is proof that Triple H knows what he is doing down in NXT .

Powerball jackpot climbs to $650M after no one wins Saturday
The highest-ever Powerball jackpot was almost $1.6 billion in a January 2016 draw, which was split between three winning tickets. The winning numbers in Powerball's massive $ 535 million jackpot drawn Saturday were 17, 19, 39, 43, 68 and Powerball number 13.

Intel CEO Brian Krzanich Just Stepped Down from Trump's Council
Trump has since done so, but the belated statement did not stem the criticism from the private sector. At the time of writing , Trump has not commented on Krzanich or Frazier's resignations.

Dallas-based Oncor serves nearly 10 million customers and operates more than 170,590 kilometres of distribution lines. Both will serve on Oncor's board. Energy Future's earlier efforts to sell the firm have failed.

"It is important for Oncor to remain financially strong", Reed said.

Sempra said Oncor's board will retain its existing independence.

Oncor services about 10 million customers in Texas and employs about 3,700 people. Allen Nye, now Oncor's general counsel, would be named the utility's CEO, according to a press release.

The Texas Tribune provided this story.

Recommended:

  • TV icon Sir Bruce Forsyth dies aged 89

    TV icon Sir Bruce Forsyth dies aged 89

    They added there would be no further comment at the moment and asked for their privacy to be respected "at this most hard time". In a statement , his manager Ian Wilson said his health had deteriorated in recent weeks and he contracted bronchial pneumonia.
    Malaysia says sorry for flag gaffe

    Malaysia says sorry for flag gaffe

    The swimmers, Jacqueline Lim and Nur Hafizah Ahmad, were shown next to what appeared to be a flag for Brunei's armed forces. We are investigating and will take action as the incident should not have happened.
    No relations with Syria for countries backing rebels - Assad

    No relations with Syria for countries backing rebels - Assad

    The fairground is also located near the rebel-held eastern Ghouta region in the eastern countryside of Damascus. Rami Abdulrahman, the head of the Observatory, did not rule out other causes that may have caused the blast.
  • NFL Commissioner Roger Goodell nearing contract extension

    NFL Commissioner Roger Goodell nearing contract extension

    ESPN reported that, while Goodell is on track to receive a new deal, there are still some issues that need to be ironed out. Goodell's current deal runs out in 2019, so this extension will keep him in the job until 2024.
    Smith relying on India experience to beat Bangladesh

    Smith relying on India experience to beat Bangladesh

    The first test is at Dhaka's Shere Bangla National Stadium starts August 27 and the second test starts September 4 at Chittagong. Cricket Australia agreed to reschedule the series this year only after Bangladesh promised intense security.
    Iraqi forces liberate IS-held village in western Tal Afar

    Iraqi forces liberate IS-held village in western Tal Afar

    Five villages surrounding Tal Afar were retaken by Iraqi Forces and the PMF on the first day of the offensive. Abadi in a televised speech said warned the terrorists saying they had two choices - surrender or die.
  • Game of Thrones season seven finale promo is here

    I feel like for me personally, it's bothered me but I could mostly ignore it and shut my mind off for quality TV. No war must be easy and with a dragon by the night king's side, we just can't wait for the final war.
    Police identify 3 children found dead in Maryland home

    Police identify 3 children found dead in Maryland home

    Inside the home, they found the girls with "trauma to the body", Donelan said at the press conference. Ariana and Ajayah were sisters from Newark, N.J., who were visiting Nadiara for the summer.
    Virat Kohli completes 4000 ODI runs in successful chases for India

    Virat Kohli completes 4000 ODI runs in successful chases for India

    While Sri Lanka will battle a lot of ifs and buts and permutations and combinations, India have their own share of problems. But since they're on a vacation, the duo have been spotted at parties and shopping and now enjoying nature in Sri Lanka .
  • Boston Red Sox: Rafael Devers already looks like a Yankee-killer

    Porcello is looking for his first win against NY this season after going 0-3 in the first three chances despite a 3.79 ERA. Denard Span drove in three runs, the first with a leadoff inside-the-park homer in the first inning, for the Giants.
    Chhattisgarh BJP leader sold skin and bones of dead cows

    Chhattisgarh BJP leader sold skin and bones of dead cows

    The reasons are strikingly similar - improper facilities, lack of fodder, no hygiene, pneumonia caused by rains, etc. Patel has ordered shifting of more than 500 cows to neighbouring shelters.

    Game of Thrones Season 7

    Perhaps there is a need for more snowy horizons this time around, since, you know, winter is here now. The penultimate episode of the fantasy drama has already leaked and distributed on torrent sites.


Popular

Buffalo Bills WR Anquan Boldin Is Retiring
That leaves Andre Holmes and Philly Brown now competing for an increased role in an offense headed by quarterback Tyrod Taylor . He discounted the notion that he might reconsider retirement and choose to play for a contender later this season.

D'Onta Foreman finds the end zone in second preseason game
Fantasy Impact D'Onta Foreman primarily played with the backups Saturday night as he was the fourth Texans back to see the field. The Patriots will play in Detroit next Friday before closing the preseason on August 31 at Gillette Stadium against the Giants.

Some Liberty University Graduates Returning Diplomas to Protest Trump
Browning and all that he has done to grow the university and to keep it grounded in the Christian mission that it was built upon". Liberty President Jerry Falwell said Browning's impact on the university is immeasurable: "We have the greatest respect for Mr.

NU Professor, Oxford Staffer Charged With 1st Degree Murder
But the men instead fled the apartment and Chicago , prosecutors said, stopping twice to leave cash donations in the name of Mr. Cornell-Duranleau: one for $5,610 at a health center in Chicago and one for $1,000 at a public library in Lake Geneva, Wis.

USA says joint South Korea war games not on the negotiating table
US and South Korean military forces are gearing up to start joint large-scale air, land and sea maneuvers Monday in South Korea. Moon said he believes dialogue with North Korea can happen when North Korea halts missile and nuclear tests.

Samsung Galaxy Note 8 to have a Snapdragon 835 chipset
With the latest upgrade, Bixby can now understand more languages, including some regional languages in India as well. Moreover, the device will also sport an F1.6 aperture on at least any of its cameras.

U.S. benchmarks in the red: Aus shares set to fall
The S&P 500 on Friday lost 4.46 points, or 0.18 percent, to close at 2,425.55, falling 0.6 percent from 2,441.2 on August 11. Moreover, it was reported on Friday that Trump had also removed Steve Bannon from the post of White House chief strategist.

Kaepernick Items to be Included in Black Lives Matter Collection at Smithsonian
He has been unemployed since March, when he opted out of his contract and became a free agent who could sign with any team. The gathering at Brooklyn Bridge Park featured roughly 80 officers, according to the New York Times .

At least 8 injured in Russian Federation knife attack
Amateur video emerged from the scene, showing a policeman kneeling over the motionless body of the suspect. Two of wounded are in serious condition while five more are stable, a regional government statement said.

Stoke City 1-0 Arsenal: Jese sinks misfiring Gunners
Wenger was also left lamenting a 72nd-minute offside decision against Alexandre Lacazette which ruled out an Arsenal equaliser. For Arsenal Aaron Ramsey and Mesut Ozil did their best to try and create something but they just couldn't find a way through.