WASHINGTON (dpa-AFX) - Duke Energy (DUK), alongside GIC, Thursday announced that it has entered into a definitive agreement for an acquisition of a 19.9 percent interest in Duke Energy Indiana (DEI), a subsidiary of Duke Energy, by an affiliate of GIC Private Limited, Singapore's sovereign wealth fund.
Duke Energy also announced its 2021 adjusted earnings guidance of $5.00 to $5.30 per share. The transaction with GIC bolsters the company's growth potential and supports its increased long-term adjusted EPS growth rate of 5 to 7% through 2025, based off of a 2021 adjusted EPS midpoint of $5.15.
GIC will acquire a 19.9 percent indirect minority interest in Duke Energy Indiana for a total purchase price of $2.05 billion, a significant premium to Duke Energy's current public equity valuation.
Proceeds from the transaction will fund Duke Energy's increased $58 to $60 billion capital plan, a five-year plan that will accelerate its clean energy transition and redeploy capital to support increased growth investments within its portfolio of regulated utilities.
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