Brookfield invests in 19.7% non-controlling equity stake in Duke Energy Florida

Duke Energy (DUK) announced it has entered into a definitive agreement for Brookfield, through its Super-Core Infrastructure strategy, to hold a 19.7% indirect equity interest in Duke Energy Florida for an aggregate amount of $6B. Brookfield will invest in Florida Progress, which owns all of Duke Energy Florida. Brookfield will acquire its indirect equity interest in Duke Energy Florida in phases, with Florida Progress receiving $2.8 billion at the first closing expected to occur in early 2026 and another $200 million by the end of 2026. An additional $2 billion will be received in 2027 and the remaining $1 billion will be received in 2028. Brookfield has the option to fund the total $6 billion investment sooner. Duke Energy will retain an 80.3% interest in the business and will continue to operate Duke Energy Florida with its best-in-class workforce. Brookfield will receive certain rights commensurate with its ownership interest. The transaction is subject to customary closing conditions, including regulatory approval from the Federal Energy Regulatory Commission and completion of review by the Committee on Foreign Investment in the United States as well as approval, or a determination that the transaction does not require approval, by the Nuclear Regulatory Commission. “The all-cash transaction is an attractive and efficient form of financing. The investment supports Duke Energy’s ability to serve customers in its fast-growing electric and gas utilities, strengthens its balance sheet and funds ongoing capital needs associated with its energy modernization strategy. The investment represents a significant premium to Duke Energy’s current public equity valuation. Two billion dollars of the proceeds from the transaction will fund Duke Energy’s increased $87 billion, five-year capital plan and $4 billion will be used to displace holding company debt,” the companies stated.