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NextEra sells fibre optic business for $1.5 billion

The decision to divest Fibernet to Crown Castle International comes one day after NextEra agreed to buy a utility in Texas for $2.4bn.

NextEra Energy has sold its fibre-optic infrastructure company FiberNet to Crown Castle International for $1.5 billion.

The deal sends FiberNet and its subsidiaries to one of the largest wireless internet providers in the US. NextEra, a clean energy company managing 45GW of generating capacity, said a portion of the sale proceeds will repay $370 million of FiberNet's long-term debt.

The transaction is subject to regulatory approvals and is expected to close in the first half of 2017.

“This transaction is consistent with our strategy of recycling capital to focus on our core businesses and support our overall credit position and strong balance sheet,” said NextEra chief executive Jim Robo.

UBS Investment Bank served as a financial advisor, and Hogan Lovells as legal counsel, to NextEra.

The deal comes one day after NextEra agreed to a $2.4 billion acquisition of Oncor Electricity Deliver, one of the largest transmission and distribution utilities in Texas. It purchased around a 20 percent indirect stake in Oncor from its previous owner, Texas Transmission Holdings. This stake is matched with the 80 percent stake in Oncor NextEra purchased in July for $18.4 billion from bankrupt Texas power company Energy Future Holdings.

This deal is expected to close in the first quarter of next year.