JPM’s Infrastructure Investments Fund Purchasing El Paso Electric Company
J.P. Morgan Investment Management’s advised investment vehicle, the Infrastructure Investments Fund (IIF), is reportedly purchasing the El Paso Electric Company (EPE) for $68.25 in cash per share in an agreement representing a collective value of approximately $4.3 billion. The deal is approved by EPE’s Board of Directors & is awaiting approval from the shareholders and other regulatory bodies. it is expected to close in the first half of 2020.
Reportedly, President and CEO of El Paso Electric, Mary Kipp stated “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. 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,”
IIF is seeking to provide full support to EPE encouraging its employee base, communities, customers, and enhancing its growing service area needs. The agreement includes specific commitments few of them are stated below:
1. EPE to remain headquartered in El Paso, Texas. IIF to ensure EPE’s employees and management remain in place and work independently.
2. IIF to support EPE’s existing Community Partner Program that provides financial support to many local organizations benefitting EPE’s service area.
3. An investment of $100 million over 20 years to be made to fund the growth and development of EPE’s service area under A Community Economic Sustainability Fund by EPE and IIF.
Lazard and BofA Merrill Lynch will act as financial adviser to EPE and IIF respectively. Baker Botts L.L.P will act as legal adviser for EPE and Skadden, Arps, Slate, Meagher & Flom LLP to IIF.
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