03:58 PM EST, 01/09/2025 (MT Newswires) -- American Electric Power ( AEP ) agreed to sell a 19.9% stake in its Ohio and its Indiana & Michigan transmission companies to a partnership between KKR (KKR) and PSP Investments for $2.82 billion.

The minority stake represents about 5% of American Electric Power's ( AEP ) total transmission rate base. The proceeds will fund a five-year, $54 billion capital growth plan and offset "a significant amount" of $5.35 billion equity financing needs through 2029, the company said Thursday in a statement.

The stake sales will be accretive to earnings and the credit profile immediately, the company said.

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