FirstEnergy sells 30% stake in transmission subsidiary for $3.5bn
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FirstEnergy announced it has completed the previously disclosed sale of an additional 30% ownership interest in its FirstEnergy Transmission (FET) subsidiary to Brookfield Super-Core Infrastructure Partners for $3.5 billion.
The Ohio-headquartered electric utility company received $2.3 billion of cash proceeds at closing, with the remaining $1.2 billion in interest-bearing notes due from Brookfield, which are expected to be paid off by the end of 2024.
FirstEnergy said some proceeds from the transaction will be used to support its five-year, $26 billion Energize365 grid investment program.
This transaction follows Brookfield’s purchase of a 19.9% ownership interest in FET for $2.4 billion in 2022.
With its closing, FirstEnergy will have completed approximately $7 billion in strategic equity financings at an equivalent share price of $87 per share, or 36x trailing 12-month price-to-earnings valuation since late 2021.
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“With the successful completion of this transaction, FirstEnergy is entering a new era of financial strength and growth,” said Brian X. Tierney, FirstEnergy president and chief executive officer.
“We are pleased to leverage this strong foundation to make important investments to deliver reliable and safe power to our customers and meet the energy challenges of the future.”
Originally published by Sean Wolfe on, and edited with permission from, Power Grid.
