(Reuters) -Energy company NiSource said on Tuesday it would sell a minority stake in its unit, NIPSCO, for $2.15 billion to asset manager Blackstone’s infrastructure unit.
The transaction will help Nisource cut debt and fund its transition towards renewable energy, the company said.
NIPSCO is an integrated electric- and gas-distribution unit that operates in Indiana and serves about 1.3 million customers.
Utility peers such as Duke Energy and FirstEnergy have also sold stakes in their subsidiaries this year as they seek to invest in cleaner sources of energy.
Blackstone Infrastructure Partners will acquire 19.9% of NIPSCO in a deal that values the Indiana-based unit at $10.8 billion.
The transaction is expected to close by the end of 2023.
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(Reporting by Sourasis Bose in Bengaluru; Editing by Shilpi Majumdar and Vinay Dwivedi)