The dedicated Infrastructure group of alternative asset manager Blackstone Inc (NYSE:BX) has struck a deal to acquire a minority stake in Northern Indiana Public Service Company (NIPSCO) from utility NiSource Inc (NYSE:NI).
An affiliate of Blackstone Infrastructure Partners has agreed to pay USD 2.15 billion (EUR 2bn) for a 19.9% interest in Indiana’s largest vertically integrated electric and gas distribution company. On a 100% basis, the transaction implies an equity value of USD 10.8 billion and enterprise value of USD 14.3 billion for NIPSCO, according to a press release by NiSource.
The transaction is seen to be finalised by the end of the year, subject to receiving the necessary approvals.
The Blackstone affiliate has also committed to investing an additional USD 250 million to fund ongoing capital requirements, with the goal to support NIPSCO’s energy transition and decarbonisation programmes.
NIPSCO provides critical utility service to nearly 1.3 million customers in its service territory. The company says it is developing “one of the lowest-cost portfolios of renewable energy projects” and is looking forward to retiring all of its coal-fired plants by the end of 2028. It anticipates investing some USD 3.5 billion in electric generation transition investments by 2030, the majority of which will finance the installation of new renewable generation.
“Once completed, this transaction will also strengthen our ability to invest in major renewable generation projects and make capital enhancements to existing electric and gas infrastructure to add resiliency to our system,” stated Mike Hooper, president and chief operating officer of NIPSCO.
NiSource’s president and CEO Lloyd Yates, in turn, commented that the company’s commitment to Indiana remains unchanged and that the stake sale will have no impact on NIPSCO’s current strategic direction.
(USD 1.0 = EUR 0.937)
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