TXNM Energy shares soar on Blackstone buyout deal

Published 19/05/2025, 12:04
© Reuters.

Investing.com -- Shares of TXNM Energy (NYSE:TXNM) surged 9.2% following the announcement of an acquisition agreement with Blackstone (NYSE:BX) Infrastructure.

The deal, which values the energy company at $61.25 per share in cash, reflects a total enterprise value of $11.5 billion, inclusive of net debt and preferred stock.

This acquisition price represents a 23.0% premium over TXNM Energy’s unaffected 30-day volume weighted average price as of March 5, 2025.

TXNM Energy, through its subsidiaries PNM and TNMP, has been a key player in providing electricity infrastructure in New Mexico and Texas.

The company has been actively investing in infrastructure to support the transition to clean energy in New Mexico and to accommodate growth in Texas.

The transaction is set to provide significant capital to further these initiatives.

Blackstone Infrastructure, boasting $60 billion of assets under management, is an experienced investor in North American utilities.

In addition to the buyout, Blackstone Infrastructure is investing $400 million through the purchase of newly issued TXNM Energy common stock to support the company’s growth plans.

This equity issuance is anticipated to be completed in June 2025.

The transaction, which includes the assumption of existing debt without increasing leverage, is expected to close in the second half of 2026, pending shareholder and regulatory approvals.

With the closing of the transaction, Pat Collawn will step down as Executive Chair, and Don Tarry will take over as President and CEO, overseeing the continued operations of TXNM Energy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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