U.S. utility Sempra Energy (SRE) 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
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