AKRON, Ohio, Nov. 7, 2021 /PRNewswire/ -- FirstEnergy Corp. (NYSE: FE) today announced two strategic financings with two of the premier global infrastructure funds – Blackstone Infrastructure Partners and Brookfield Super-Core Infrastructure Partners (Brookfield) – that will raise a combined $3.4 billion in equity proceeds to strengthen FirstEnergy's financial position, capitalize on incremental investment opportunities and address all equity plans. FirstEnergy also introduced a long-term EPS growth rate of 6-8%.
FirstEnergy announced an agreement to issue $1 billion of common equity to Blackstone Infrastructure Partners at $39.08 per share, which is equal to FirstEnergy's common equity five-day volume-weighted average price (VWAP) as of the market close on Friday, November 5, 2021. FirstEnergy has also entered into a definitive agreement with Brookfield to sell a 19.9% stake in FET, the holding company for FirstEnergy's three regulated transmission subsidiaries, for $2.4 billion, representing an exceptionally attractive electric utility valuation of 40x LTM P/E.
The company also announced a $2.2 billion increase to its capital investment plan through 2025, which now totals $17 billion from 2021 to 2025, including $10 billion in sustainable energy investments.
"We are pleased to announce these transformative strategic equity financings with two of the premier global infrastructure funds, Blackstone Infrastructure Partners and Brookfield. With these financings and, as importantly, long-term partnerships, FirstEnergy will be even better positioned to capitalize on the growth opportunities ahead and advance our company's key business priorities," said Steven E. Strah, FirstEnergy president and chief executive officer. "We are pleased to have achieved an historical premium valuation within the utility sector for the FET transaction with a long-term, experienced and well-respected partner in Brookfield. Together with the $1 billion investment by Blackstone Infrastructure Partners, these transactions will be key catalysts to fulfill our long-term strategy and drive smart ..
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