NiSource to Sell 19.9% Stake in NIPSCO to Blackstone For $2.15 Billion

By Will Feuer

Energy company NiSource said it has agreed to sell a 19.9% stake in its electric utility in Indiana to Blackstone Infrastructure Partners, an affiliate of private-equity firm Blackstone, for $2.15 billion.

The deal, expected to close by the end of the year, gives NIPSCO, or the Northern Indiana Public Service Co., an equity valuation of $10.8 billion. NiSource will continue to operate NIPSCO, with Blackstone receiving minority rights.

NiSource said it plans to use the cash from the deal to pay down debt, support operations and fund the transition toward renewable generation. Through 2030, NIPSCO expects to invest about $3.5 billion in the electric generation transition, with most of that investment focused on installing new renewable generation to replace coal-fired generation retirements.

Shares of NiSource rose 2.3% to $28.00 in premarket trading. Blackstone shares fell 0.6% to $90.55.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

June 20, 2023 06:52 ET (10:52 GMT)

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