Infrastructure Investments Fund enters agreement to purchase El Paso Electric
El Paso Electric Company (EPE) and the Infrastructure Investments Fund (IIF), an investment vehicle advised by J.P. Morgan Investment Management Inc., announced Monday that they entered into a definitive agreement under which IIF will purchase EPE.
“As we look to the future and the long-term investment required to meet the growing energy needs of our communities, we are confident IIF is the ideal partner for our region and EPE,” Mary Kipp, president and CEO of El Paso Electric, said.
IIF will purchase EPE for $68.25 in cash per share, representing an enterprise value of approximately $4.3 billion.
EPE and IIF agreed to several commitments in the agreement, which will take effect upon closing. The agreements include commitments to ensure that EPE’s workforce remains in places, that EPE remains headquartered in El Paso, Texas and that it continues as an independently operated, regulated utility.
EPE and IIF each committed to $21 million in credits on customer electric bills over 36 months. The companies will also establish a Community Economic Sustainability Fund to invest $100 million over 20 years to foster growth and economic development in EPE’s service area and remain committed to $1.2 million in annual charitable contributions under EPE’s Community Partner Program.
“This agreement demonstrates that IIF values local job retention and growth; creating a sustainable path to enhance our renewable energy resources and protecting the environment; and treating our 1,100 employees, their families and our customers with transparency and respect,” Kipp said. “Our partnership brings value to everyone; our customers, shareholders, our employees, and community. This is a tremendous opportunity to scale and prepare the Company for a clean energy future that is local and sustainable.”
EPE’s Board of Directors unanimously approved the agreement. It is expected to close in the first half of 2020, subject to approval by EPE’s shareholders, the receipt of regulatory approvals and other customary closing conditions.
