Brookfield Focuses On Core Trade, Divests Asset For $1.3B

Brookfield Infrastructure (NYSE:BIP) announced the signing of a definitive agreement to sell its interest in ETC Transmission Holdings, S.L., the parent company of Transelec S.A. (“Transelec”), to China Southern Power Grid International (HK) Co., Ltd.

Per the agreement, Brookfield Infrastructure will sell its 27.8% of interest in the ETC Transmission Holdings for nearly $1.3 billion. The company anticipates closing the transaction by the first half of 2018, subject to customary closing conditions, third-partyconsents and regulatory approvals from authorities in China.

Reason Behind the Move

It is clear that Brookfield Infrastructure is aiming to make the most of its current portfolio, through capital recycling program. Notably, the capital recycling program will aid the company to dispose mature non-core assets and focus more on high-return core assets.

Moving Ahead

Going ahead, Brookfield Infrastructure’s strong pipeline of projects is likely to aid the company to perform well. Toward this, the company’s total capital backlog at the end of September 2017 was pegged at $2.2 billion.

Notably, the company anticipates bringing online its Gulf Coast expansion project worth $300 million that is currently underway, by 2018.

Price Movement

Shares of Brookfield Infrastructure have outperformed the industry in the last year. The company’s shares gained 37.5%, compared with the industry’s growth of 9.5%.

Zacks Rank & Key Picks

Brookfield Infrastructure currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks from the same space are Atlantic Power Corporation (NYSE:AT) , DTE Energy Company (NYSE:DTE) and IDACORP, Inc. (NYSE:IDA) , all of which carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Atlantic Power delivered an average surprise of 29.21% in the trailing four quarters. Its 2017 estimates have narrowed to a loss of 22 cents from a loss of 27 cents in the last 60 days.

DTE Energy delivered an average surprise of 3.81% in the trailing four quarters. Its 2017 estimates have risen to $5.54 per share from $5.42 per share in the last 90 days.

IDACORP delivered an average surprise of 6.97% in the trailing four quarters. Its 2017 estimates have risen to $4.08 per share to $4.00 per share in the last 60 days.

Wall Street’s Next Amazon (NASDAQ:AMZN)

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>