CMS Energy Corp. (CMS) announced Tuesday an agreement to sell its EnerBank USA subsidiary for $960 million in cash to Regions Financial Corp. (RF), as the Michigan-based consumer energy business said it was exiting a "non-core business at a compelling valuation." CMS shares fell 0.2% in premarket trading, while Regions' stock lost 0.5%. The deal is expected to close in the fourth quarter. CMS said it plans to use the proceeds from the sale to reinvest in its core business to fund initiatives related to safety, reliability and the transformation to clean energy. CMS affirmed its 2021 adjusted earnings per share guidance of $2.83 to $2.87, which surrounds the FactSet consensus of $2.86. CMS's stock has edged up 2.9% year to date through Monday, while the SPDR Utilities Select Sector ETF (XLU) has tacked on 4.5% and the S&P 500 has advanced 12.5%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
06-08-21 0927ETCopyright (c) 2021 Dow Jones & Company, Inc.