KKR and PSP to Buy AEP Transmission Stake for $2.8 Billion (1)

American Electric Power Co. agreed to sell a minority stake in its transmission business to KKR & Co. and Canada’s PSP Investments for $2.8 billion.

The investment firms will acquire a roughly 20% interest in AEP’s Ohio, Indiana and Michigan transmission companies, the companies said in a statement Thursday.

KKR and PSP, which formed a 50-50 partnership for the acquisition, are investing in transmission as electricity use in the US is expected to surge, thanks to data centers and artificial intelligence.

“Areas such as Ohio and Indiana are experiencing growth that has not been seen for decades,” AEP Chief Executive ...