HOUSTON, TEXAS (Editors at Energy Analytics Institute, 19.May.2025, Words: 453) — TXNM Energy announced an agreement under which Blackstone Infrastructure will acquire TXNM for $61.25 per share in cash upon closing, reflecting a total enterprise value of $11.5bn, including net debt (excluding securitization debt) and preferred stock.
TXNM, through its subsidiaries PNM and TNMP, is focused on meeting the critical electricity infrastructure needs of its customers. PNM is supporting the evolution of its generation portfolio to meet New Mexico’s clean energy goals and is identifying opportunities to achieve the energy transition in a cost-effective manner for customers.
TNMP has consistently increased its annual capital investments to meet sustained nation-leading growth levels in its Texas service territory. This transaction provides significant long-term capital to support these goals, TXNM announced on 22 May 2025 in an official statement.
Blackstone is funding the purchase price entirely with equity and does not anticipate increasing TXNM leverage levels to fund the purchase of the company.
Pat Collawn will step down as executive chair upon closing of the transaction. Don Tarry will oversee the continuing operations of TXNM as President and CEO.
Terms, approvals and timing
The purchase price of $61.25 per share represents a 23.0% premium to TXNM Energy’s unaffected 30-day volume weighted average price (VWAP) as of 5 Mar. 2025, the day prior to an article reporting a developing acquisition for TXNM.
Blackstone is also investing $40mn through the purchase of 8 million newly issued shares of TXNM common stock at $50 per share, by way of a private placement agreement, to support TXNM’s industry-leading growth plans. This issuance is expected to be completed in Jun. 2025.
To support the funding of TXNM’s industry-leading growth rates, TXNM expects to issue an additional $400mn of equity prior to closing of the transaction.
The transaction is funded through equity and assumption of existing debt, and no incremental debt will be issued as a result of the transaction.
Dividends payable to TXNM shareholders are expected to continue through the closing of the transaction, subject to approval by the TXNM board of directors.
The transaction was unanimously approved by TXNM’s board of directors and is estimated to close in the second-half 2026, subject to TXNM shareholder approval, regulatory approvals and other customary closing conditions. Regulatory approvals are required from the NMPRC, PUCT, Federal Energy Regulatory Commission, Department of Justice (Hart Scott-Rodino Clearance), Nuclear Regulatory Commission and Federal Communications Commission.
Advisors
Wells Fargo is serving as lead financial advisor, Citi is also serving as a financial advisor, and Troutman Pepper Locke LLP is serving as legal advisor to TXNM. RBC Capital Markets, LLC is serving as lead financial advisor and J.P. Morgan is also serving as a financial advisor to Blackstone. Kirkland & Ellis LLP is serving as legal advisor to Blackstone.
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By Editors reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
