AKRON, Ohio - FirstEnergy Corp. (NYSE: NYSE:FE) has completed the sale of a 30% ownership interest in its FirstEnergy Transmission, LLC (FET) subsidiary to Brookfield Super-Core Infrastructure Partners for $3.5 billion. The deal, which was finalized today, follows Brookfield's previous acquisition of a 19.9% stake in FET in 2022 for $2.4 billion.
The transaction includes $2.3 billion in cash and $1.2 billion in interest-bearing notes from Brookfield, expected to be settled by the end of 2024. This influx of capital is earmarked to reinforce FirstEnergy's balance sheet and to fund its Energize365 grid investment program, a five-year initiative with a budget of $26 billion.
FirstEnergy's President and CEO, Brian X. Tierney, stated that the closing of this transaction marks the beginning of a new phase of financial stability and expansion for the company. He emphasized the importance of these investments in maintaining reliable and safe power delivery to meet future energy challenges.
Natalie Hadad, Managing Partner in Brookfield's Infrastructure Group and Co-Head of Brookfield Super-Core Infrastructure Partners, expressed enthusiasm for the increased investment in FET. She highlighted FET's alignment with Brookfield's strategy to invest in essential infrastructure assets that provide stable, long-term cash flows and support decarbonization and electrification efforts.
With the completion of this sale, FirstEnergy has executed approximately $7 billion in strategic equity financings since late 2021, based on a share price valuation of $87 per share, or 36 times the trailing 12-month earnings.
FirstEnergy, committed to integrity, safety, reliability, and operational excellence, serves over 6 million customers across six states and operates around 24,000 miles of transmission lines.
This news is based on a press release statement from FirstEnergy Corp. and includes forward-looking statements subject to risks, uncertainties, and other factors that may influence actual results. Readers should not place undue reliance on these forward-looking statements, which are not guarantees of future performance.
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