Sempra Energy Unit To Sell Parent Company Of Mobile Gas And Willmut Gas

(RTTNews) - Sempra U.S. Gas & Power, a unit of Sempra Energy (SRE), said that it agreed to sell EnergySouth, Inc., the parent company of Mobile Gas Service Corp. and Willmut Gas & Oil Company, to The Laclede Group Inc. (LG). Cash proceeds to Sempra U.S. Gas & Power are expected to be about $323 million, subject to normal adjustments at close, and The Laclede Group, Inc. will assume existing debt of about $67 million.

Sempra U.S. Gas & Power expects to record a gain on the sale upon closing.

The transaction is subject to customary regulatory approvals. At close of the transaction, EnergySouth will consist of only Mobile Gas and Willmut Gas, and will not include Bay Gas Storage Company, Mississippi Hub, LLC, Liberty Gas Storage or Southern Gas Transmission, which will be retained by Sempra U.S. Gas & Power.

Separately, Laclede confirmed that it will acquire 100 percent of the outstanding equity of EnergySouth, Inc., the parent of Mobile Gas and Willmut Gas, for $344 million. All non-utility businesses in EnergySouth will be retained by Sempra. After the inclusion of working capital adjustments and the assumption of $67 million in debt, the transaction is expected to result in total cash proceeds of $323 million. Closing on the transaction is expected to occur in 2016.