TXNM Energy Stock Soars 7% on Blackstone's $115B Acquisition

TXNM Energy, a company providing electricity to New Mexico and Texas, saw its stock price reach an all-time high on Monday. This surge followed the announcement that Blackstone's infrastructure division would acquire the company for 115 billion dollars in cash and debt. The acquisition price of 61.25 dollars per share represents a nearly 16% premium over TXNM's closing price from the previous Friday.

The deal involves Blackstone's infrastructure division paying 61.25 dollars per share to TXNM investors. Additionally, Blackstone will invest 4 billion dollars to purchase 8 million newly issued ordinary shares of TXNM at 50 dollars per share through a private placement. This investment is aimed at supporting TXNM's growth initiatives. TXNM is expected to match this amount before the transaction is completed, anticipated to occur in the second half of 2026.

Sean Klimczak, the global head of Blackstone Infrastructure, expressed the company's commitment to long-term investments. He stated, "We look forward to the opportunity to have meaningful conversations about how to make dual-win, growth-oriented investments in both states."

As part of the acquisition, Pat Collawn, the executive chairman of TXNM, will step down. Don Tarry, the current chairman and CEO, will take on the role of president and CEO, overseeing the company's operations. The transaction is subject to regulatory approvals and other customary closing conditions.

TXNM Energy's stock price surged by 7% on Monday, reaching approximately 56.60 dollars per share within an hour of the market opening. This marked a new historical high for the company, previously reaching 57.29 dollars per share. Meanwhile, Blackstone's stock price experienced a 1% decline.

This acquisition by Blackstone follows a previous attempt by Iberdrola, a Spanish energy giant, to acquire TXNM for 43 billion dollars in 2022. That deal fell through due to regulatory hurdles in New Mexico. The current acquisition by Blackstone is expected to face fewer regulatory challenges, given Blackstone's extensive experience in infrastructure investments and its strong financial backing.

The acquisition of TXNM Energy by Blackstone is a significant development in the energy sector, highlighting the growing interest of private equity firms in infrastructure investments. The deal underscores Blackstone's strategy of focusing on long-term, growth-oriented investments in key sectors such as energy and utilities. For TXNM Energy, the acquisition provides an opportunity to leverage Blackstone's financial resources and expertise to drive further growth and innovation in the energy sector.