Blackstone to Acquire TXNM Energy for $115 Billion, 16% Premium

Blackstone Group Inc. (BX.US) has announced its intention to acquire TXNM Energy (TXNM.US) for a total enterprise value of 115 billion dollars, including net debt. The acquisition is set to be completed at a cash price of 61.25 dollars per share, representing a 16% premium over the closing price of 52.88 dollars on the previous Friday. This move confirms earlier market rumors of a potential acquisition.

The transaction includes a private placement by Blackstone, where 8 million new shares of TXNM will be issued at 50 dollars per share, totaling an investment of 4 billion dollars. This investment is intended to support TXNM Energy's business expansion plans. The acquisition is expected to be completed with the current management team of TXNM continuing to lead the company, with the current executive chairman, Pat Collawn, stepping down and the current president and CEO, Don Tarry, continuing to oversee daily operations.

This acquisition by Blackstone marks a significant strategic move in the energy sector. TXNM Energy, formerly known as PNM Resources, has a strong presence in the utility market and is known for its innovative solutions. The acquisition is subject to regulatory approvals and other customary closing conditions. The deal is expected to enhance Blackstone's portfolio by adding a robust energy company with a strong market position.

This is not the first time TXNM Energy has been the target of an acquisition. Last year, Iberdrola, a Spanish energy giant, attempted to acquire TXNM through its U.S. subsidiary, Avangrid, for 43 billion dollars. However, the deal fell through due to the inability to secure approval from the New Mexico Public Regulation Commission.