NiSource Divests 19.9% Stake In Indiana-Based Unit To Blackstone For $2.15B
Portfolio Pulse from Nabaparna Bhattacharya
NiSource Inc has agreed to sell a 19.9% stake in its NIPSCO unit to Blackstone Inc for $2.15 billion. The deal values NIPSCO at $10.8 billion in equity and $14.3 billion in enterprise value. NiSource will use the proceeds to de-lever its balance sheet, and Blackstone Infrastructure Partners will provide an additional $250 million for ongoing capital requirements.
June 20, 2023 | 2:55 pm
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POSITIVE IMPACT
Blackstone acquires a 19.9% stake in NiSource's NIPSCO unit for $2.15B, with an additional $250M equity commitment for ongoing capital requirements.
Blackstone's acquisition of a 19.9% stake in NIPSCO for $2.15 billion, along with an additional $250 million equity commitment for ongoing capital requirements, demonstrates the company's confidence in NIPSCO's growth potential. This investment in a major utility company with a significant enterprise value of $14.3 billion is likely to have a positive short-term impact on Blackstone's stock price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
NiSource sells 19.9% stake in NIPSCO to Blackstone for $2.15B, de-levering its balance sheet and valuing NIPSCO at $14.3B enterprise value.
The divestment of a 19.9% stake in NIPSCO to Blackstone for $2.15 billion will help NiSource de-lever its balance sheet, which is a positive development for the company. The deal also values NIPSCO at a significant enterprise value of $14.3 billion, indicating a strong valuation for the unit. This news is likely to have a positive short-term impact on NiSource's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100