Sempra Energy has entered into a cooperation agreement with affiliates of Elliott Management Corporation and Bluescape Energy Partners.
Funds affiliated with Elliott and Bluescape collectively own a 4.9-percent economic interest in Sempra Energy valued at $1.6 billion.
As part of the agreement, the parties have worked cooperatively to identify a list of final board nominees and expect to work together for Sempra Energy to appoint two new directors to the company’s board that are mutually agreed between the parties in the coming weeks.
Additionally, Sempra Energy will repurpose its board’s current LNG construction and technology committee into a new LNG and business development committee.
The new committee will consist of its three current members and, upon appointment to the Sempra Energy board, the two new directors.
The LNG and business development committee’s updated charter calls for it to work with management and the board in leading a comprehensive review of Sempra Energy’s businesses. The charter also allows the committee to retain its own independent consultants and advisors.
Sempra Energy intends to update the market on the results to date of the strategic review, including any actions to be taken, in the first quarter of 2019.
Elliott and Bluescape also have agreed to a customary standstill, voting and other provisions.