FirstEnergy sells 30% more stake in FET business to Brookfield for $3.5 billion (NYSE:FE)
First energy (NYSE:FE) said Thursday it agree to sell added 30% ownership in its first Energy Transmission business to Brookfield Asset Management (NYSE:BAM MY) for $3.5 billion in cash.
FET is the parent company of three of by FirstEnergy (FE) Transmission utility subsidiaries managed by FERC – Transmission System of America, Mid-Atlantic Interstate Transmission, and Trans-Allegheny Federal Line Company – include one of the transmission systems. largest in PJM.
First energy (FE) will remain the FET’s 50.1% majority owner after the deal closes, and FirstEnergy’s workforce will continue to operate the business.
First energy (FE) said the proceeds from the deal would be used to accelerate improvements to its credit profile, after cutting $2.5 billion from its debt over the past year.
The company also raised its 2021-25 long-term growth plan to nearly $18 billion, up ~$1 billion from its $17 billion target set for 2021.
First energy (FE) is positioned to deliver solid total returns over the next few years, despite its somewhat high debt burden, Power Hedge wrote in a note. Analysis recently posted on Seeking Alpha.