Oncor Reaches $1.28 Billion Deal to Take Over InfraREIT

  By Kimberly Chin

Oncor Electric Delivery Co. has reached a deal to buy InfraREIT Inc. (HIFR) in a transaction valued at about $1.28 billion including debt.

InfraREIT said Oncor is buying it for $21 a share in cash, a 1.8% premium to InfraREIT's Wednesday closing price. Oncor is assuming about $940 million in debt in the transaction.

Prior to Oncor's purchase, InfraREIT subsidiary Sharyland Distribution & Transmission Services LLC plans to swap its South Texas assets for Sharyland Utilities LP's Golden Spread Project located in the Texas Panhandle along with development projects including the Lubbock Power & Light interconnection. Sharyland Utilities is a tenant of Sharyland Distribution & Transmission Services.

The agreement with Oncor includes a go-shop provision allowing InfraREIT to solicit bids from other parties through Nov. 17.

Sempra Energy (SRE), which owns a majority stake in Oncor, will also acquire a 50% interest in Sharyland Holdings LP.

The transaction is expected to close in mid-2019.

InfraREIT's shares rose 2.8% in premarket trading. Shares in Sempra Energy were unchanged premarket.

Write to Kimberly Chin at Kimberly.Chin@wsj.com

(END) Dow Jones Newswires

October 18, 2018 08:55 ET (12:55 GMT)

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