Brookfield Nearing Deal for FirstEnergy Transmission Stake

(Bloomberg) -- FirstEnergy Corp. is nearing a deal to sell a stake in its transmission businesses to Brookfield Asset Management Inc. for $2.4 billion, according to people familiar with the matter.

The Akron, Ohio-based utility plans to sell a 19.9% stake in FirstEnergy Transmission to Brookfield’s infrastructure group, said the people, who asked not to be identified because they weren’t authorized to speak publicly. 

Separately, FirstEnergy is also nearing an agreement to issue $1 billion in common stock to Blackstone Inc. at $39.08 a share, the people said. The two deals could be announced as soon as Sunday, although no final agreements have been reached and talks could still collapse, they said.

Blackstone will get a seat on FirstEnergy’s board as part of the transactions, the people said. 

FirstEnergy declined to comment. Brookfield and Blackstone didn’t immediately respond to requests for comment. FirstEnergy’s shares closed at $39.07 in New York Friday, giving the utility a market valuation of about $21 billion.

FirstEnergy is working to improve the reliability and resiliency of its grid, while also integrating more renewable energy resources and electric-vehicle charging infrastructure. The investments are expected to improve the company’s credit profile and provide a boost to its capital investment plan.

FirstEnergy’s transmission subsidiaries, which include American Transmission Systems, Mid-Atlantic Interstate Transmission and Trans-Allegheny Interstate Line Co., operate more than 24,000 miles (39,000 kilometers) of transmission lines that connect the Midwest and Mid-Atlantic regions.

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