Activist Voss Capital Urges Sempra to Spin Off Oncor, Citing Potential $78B Value
SRE sits 23% above its 52-week low of $73.06.
Summary
Activist investor Voss Capital, which owns less than 1% of Sempra, is urging the company to spin off its Texas electricity unit, Oncor. Voss argues an independent Oncor could be worth up to $78 billion by 2028, potentially exceeding Sempra's current market value. The activist believes this separation would simplify Sempra's complex structure and unlock significant shareholder value by isolating Oncor's high-growth Texas operations from the different risk profiles of Sempra's California utility and LNG businesses. This proposal comes after Oncor recently received final regulatory approval in April for a base rate review, which is expected to increase its revenue. Sempra has also been active in capital markets with recent debt offerings and an ATM equity program. Watch for Sempra's official response to Voss Capital's proposal and any subsequent engagement with the activist investor.
At the time of this announcement, SRE was trading at $90.03 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $58.9B. The 52-week trading range was $73.06 to $101.04. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.