In June last year, IIF had signed a definitive agreement to acquire EPE for $68.25 in cash per share
The Federal Energy Regulatory Commission (FERC) has issued conditional authorisation for Infrastructure Investments Fund’s (IIF) acquisition of El Paso Electric (EPE).
FERC stated that the proposal satisfies the federal standards and is consistent with the public interest.
In June last year, IIF had signed a definitive agreement to acquire EPE for $68.25 in cash per share which represents an enterprise value of about $4.3bn.
EPE and IIF said: “We are pleased by the FERC’s order authorizing IIF’s proposed acquisition of EPE. We are working diligently to file proposed mitigation that is consistent with the order.
“We look forward to the expected closing in the first half of 2020, subject to the satisfaction or waiver of other customary closing conditions.”
FERC is the last regulatory approval to complete the proposed deal
EPE said that the approval from FERC is the last regulatory approval to complete the proposed deal.
Upon FERC’s approval of the required mitigation and satisfaction or waiver of the other closing conditions, both the firms expected the deal to be completed in the first half of the year.
EPE is a regional electric utility that provides generation, transmission and distribution services to around 433,000 retail and wholesale customers in Rio Grande valley in west Texas and southern New Mexico.
IIF is a $12.5bn private investment vehicle advised by an infrastructure investment group within J.P. Morgan Investment Management.
It is responsible for investing and growing the retirement funds of over 40 million families as well as the 2 million people across Texas and New Mexico who have invested in El Paso Electric.
Recently, New Mexico Public Regulation Commission has unanimously approved the IIF’s proposed acquisition.
Both the companies have also secured approval from US Nuclear Regulatory Commission (NRC) for the joint application for the indirect transfer of control of EPE’s ownership interest in the Palo Verde Nuclear Generating Station to IIF.