Blackstone’s infrastructure arm is acquiring listed US energy holding company TXNM Energy in a $11.5bn (€10.2bn) deal.
Blackstone is offering NYSE-listed TXNM’s shareholders $61.25 cash for each share they hold, a price that gives the company an enterprise value of $11.5bn, including net debt and preferred stock.
The acquisition price per share is a 23% premium over TXNM’s average share price in the 30 days leading up to 5 March 2025, the day before media reports emerged about a potential takeover of the company.
Blackstone said the acquisition will be fully funded with equity and it does not expect increasing TXNM’s debt levels to finance the transaction.
The manager is also investing $400m to acquire 8m newly issued shares of TXNM common stock at $50 per share, by way of a private placement agreement, to support TXNM’s growth plans, it said.
Once the deal is completed, Pat Collawn will step down as executive chair. Don Tarry will oversee the continuing operations of TXNM as president and CEO.
TXNM, headquartered in Albuquerque, New Mexico, is an energy holding company that provides electricity to over 800,000 residential and commercial customers in Texas and New Mexico through its regulated utilities, TNMP and PNM.
Collawn, who is also CEO, said: ”Our successes at TXNM Energy have stemmed from a deliberate approach to investing in PNM and TNMP in a manner aligned with the priorities of our customers and communities. We’ve integrated new resources to supply over two-thirds of PNM electricity needs with carbon-free energy and supported double-digit demand growth at TNMP.
“We are excited to form this long-term partnership with Blackstone Infrastructure to build upon these successes. We will continue to collaborate with customers, communities, legislators and regulators to achieve our shared goals for a reliable, resilient grid to support economic prosperity and clean energy.”
Sean Klimczak, global head of Blackstone Infrastructure, said: ”We are long-term investors who back industry-leading companies using our perpetual capital to support economic development.
“We are focused on being great long-term partners to the communities in which we invest, and we look forward to having the opportunity to engage in meaningful dialogue about how we can create win-win, growth-oriented investments across both states.”
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