FirstEnergy Completes $3.5 Billion Sale of 30 Percent Stake In Transmission Subsidiary
FirstEnergy has received the remaining $1.2 billion in proceeds from the $3.5 billion sale of a 30% ownership interest in its FirstEnergy transmission subsidiary to Brookfield Super-Core Infrastructure Partners (Brookfield).
FirstEnergy received the initial proceeds of $2.3 billion from Brookfield when the transaction closed in March.
The company is deploying the proceeds in a credit-accretive manner, consistent with the company's plan to further transform its balance sheet and support its five-year, $26 billion Energize365 grid investment program.
FirstEnergy has completed approximately $7 billion in strategic equity financings at an equivalent share price of $87 per share, or 36x trailing price-to-earnings valuation.
"With the successful execution of these strategic transactions, FirstEnergy now has a strong balance sheet to support important investments in our regulated businesses that enhance service reliability, the customer experience and the transition to a more electrified economy," said Brian X. Tierney, FirstEnergy President and Chief Executive Officer.
