NiSource completes NIPSCO minority interest sale
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The sale of a minority interest in the Northern Indiana Public Service Co. subsidiary from Merrillville-based NiSource Inc. to Blackstone Infrastructure Partners has been completed, NiSource announced Tuesday. The $2.16 billion deal transfers 19.9% indirect non-controlling equity interest in NIPSCO.
NiSource will own NIPSCO’s remaining 80.1% of holdings. The company said in a news release it plans to fund capital projects, work on its balance sheet and improve the customer experience through the deal.
“The transaction strengthens our balance sheet, supports our financing plan and provides greater flexibility to execute on high-quality capital investments that will enhance the safety, reliability and sustainability of our gas and electric systems for the benefit of our customers,” NiSource president and CEO, Lloyd Yates said in the release. “It’s important to reinforce that our commitment to Indiana remains unchanged, and we will continue to drive sustainable growth for our stakeholders.”
NiSource received approval from the Federal Energy Regulatory Commission in October, which was the only regulatory approval required for the deal. NiSource revealed its intent for the deal in June.
Blackstone Infrastructure Partners, which is managed by the Blackstone Group and based in New York, is an investment firm that focuses on the utility, energy transition, transportation, digital infrastructure, water and waste infrastructure sectors.
NiSource previously said Blackstone is committed to investing in NIPSCO’s ongoing energy transition and decarbonization programs.
“This investment underscores Blackstone’s commitment to decarbonization to create value for our investors and our desire to help facilitate the reindustrialization of the Midwest,” said Sebastien Sherman, Blackstone senior managing director, in a news release.