FirstEnergy Sells 30% Transmission Stake to Brookfield for $3.5 Billion

FirstEnergy Corp. (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 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 will reinforce FirstEnergy's balance sheet and fund its Energize365 grid investment program.

FirstEnergy Completes Sale of Transmission Stake to Brookfield

AKRON, Ohio—FirstEnergy Corp. (NYSE: FE) has closed 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 transaction, finalized today, follows Brookfield's prior acquisition of a 19.9% stake in FET in 2022 for $2.4 billion.

The transaction comprises $2.3 billion in cash and $1.2 billion in interest-bearing notes from Brookfield, with the notes expected to be settled by year-end 2024. The influx of capital will strengthen FirstEnergy's balance sheet and support its $26 billion Energize365 grid investment program, a five-year initiative.

"The closing of this transaction marks a new chapter of financial resilience and growth for our company," said Brian X. Tierney, FirstEnergy's President and CEO. "These investments are essential to maintaining reliable and secure power delivery as we navigate the evolving energy landscape."

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. "FET aligns with our strategy of investing in core infrastructure assets that provide stable, long-term cash flows and support decarbonization and electrification initiatives," she stated.

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, guided by its commitment to integrity, safety, reliability, and operational excellence, serves over 6 million customers across six states and operates approximately 24,000 miles of transmission lines.

Cautionary Note

This article is based on a press release statement from FirstEnergy Corp. and contains forward-looking statements that are subject to risks, uncertainties, and other factors that could affect actual results. Readers are cautioned not to place undue reliance on these forward-looking statements, which are not guarantees of future performance.