AEP to Sell Four Power Plants for $2.1 Billion, WSJ Saysby
Four AEP plants to be sold to Blackstone, ArcLight: WSJ
Sale said to involve one coal plant, three gas plants
American Electric Power Co. is nearing a deal to sell four power plants in the Midwest to Blackstone Group LP and ArcLight Capital Partners LLC for about $2.1 billion, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
The private-equity firms plan to buy the coal-fired Gavin power plant in Cheshire, Ohio, as well as three natural gas plants in Indiana and Ohio, Dow Jones said, adding the deal could be announced as soon as Tuesday.
American Electric has been looking to get rid of a collection of power plants in the U.S. Midwest for months as wholesale power prices plunge. It’s among the U.S. electricity generators disposing of plants after seeing their profits squeezed by cheap natural gas, a surge in renewable energy supplies and weak demand.
Chief Executive Officer Nick Akins reported “robust interest” in generators up for sale earlier this month and said he hoped the process could be concluded soon.
American Electric fell 1.4 percent to $63.81 in New York trading. The shares are up 9.5 percent this year.
American Electric, Blackstone and ArcLight didn’t immediately return phone calls seeking comment.