TXNM Energy, Inc. (NYSE:TXNM) shares are trading higher premarket on Monday after the company agreed to be acquired by Blackstone Infrastructure for $61.25 per share in cash at closing.
The acquisition price represents a 23.0% premium over TXNM Energy’s unaffected 30-day volume weighted average price (VWAP) as of March 5, 2025, the day before media reports of a potential acquisition.
This transaction reflects a total enterprise value of $11.5 billion, which includes net debt (excluding securitization debt) and preferred stock.
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Blackstone Infrastructure is also making a $400 million investment through a private placement agreement, purchasing 8 million newly issued shares of TXNM Energy common stock at $50 per share to support TXNM Energy’s growth plans. This issuance is expected to be completed in June 2025.
TXNM Energy anticipates issuing an additional $400 million of equity before the transaction closes to further support its growth. The transaction is being funded through equity and the assumption of existing debt, with no new debt expected to be issued as a result of the acquisition.
TXNM Energy’s Board of Directors has unanimously approved the transaction, which is estimated to close in the second half of 2026, pending shareholder and regulatory approvals.
TXNM Energy shareholders can anticipate continued dividend payments through the transaction’s closing, subject to the Board of Directors’ approval.
Upon closing the transaction, Pat Collawn will step down as Executive Chair. Notably, Pat Collawn transitioned from the current Chief Executive Officer to Executive Chair, effective July 1, 2025.
Don Tarry will assume responsibility for the ongoing operations of TXNM Energy as President and CEO.
Pat Collawn 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.”
Investors can gain exposure to the stock via Virtus Reaves Utilities ETF (NYSE:UTES) and Tema Electrification ETF (NASDAQ:VOLT).
Price Action: TXNM shares are up 9.23% at $57.76 premarket at the last check on Monday.
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