American Electric Power to sell Midwest Power Plants for $2.17 billionStaff Writer | September 15, 2016
American Electric Power Co. agreed to sell four Midwest power plants for $2.17 billion to a venture formed by Blackstone Group LP and ArcLight Capital Partners.
Acquisition AEP will move away from wholesale power markets
AEP is selling the plants as part of a move away from wholesale power markets and toward its regulated utilities. AEP had announced in January 2015 that the company was exploring strategic alternatives for these power plants, including a potential sale.
The sale is expected to close in the first quarter of 2017, subject to regulatory approval. AEP expects to net about $1.2 billion in cash after taxes, repayment of debt associated with these assets and transaction fees.
AEP said it is evaluating options and will provide details about its plans for the proceeds at an analyst day on Nov. 1. The company said it may use the money to reinvest in its regulated businesses, retire additional debt and buy back stock.
The company expects to record an after-tax gain of approximately $140 million from the sale. ■