IIF to Acquire South Jersey Industries for $8.1B; SJI Soars 40%

Infrastructure Investments Fund (IIF), an infrastructure investment group, has signed an agreement to acquire energy products and services firm South Jersey Industries, Inc. (NYSE: SJI) for approximately $8.1 billion.

The offer price of $36 per share represents a premium of 46.3% to the SJI stock’s 30-day volume-weighted average price as of February 23.

Mike Renna, the President and CEO of SJI, said, “IIF is a trusted partner and long-term investor in utility and renewable energy companies, and together we will be well-positioned to execute on SJI’s clean energy and decarbonization initiatives in support of the environmental goals of our State and region.”

Andrew Gilbert, Investment Principal to IIF, said, “We believe our expertise, resources and experience can help SJI further build on its leading position in the industry.”

Following the completion of the transaction, which is expected in the fourth quarter of this year, SJI will continue to operate from its headquarters in New Jersey with Renna serving as the CEO.

Q4 Results

Meanwhile, the company also released its financial results for the fourth quarter of 2021.

Adjusted earnings came in at $0.58 per share, lower than the year-ago earnings of $0.62 per share but higher than the Street’s estimate of $0.55 per share.

About SJI

Energy infrastructure holding company South Jersey Industries offers energy services to customers through its two subsidiaries SJI Utilities (SJIU) and SJI Energy Enterprises (SJIEE).

Following the announcements, SJI stock jumped almost 40% on Thursday to close at $32.84.

Price Target

Overall, the stock has a Hold consensus rating based on 5 Holds. The average SJI price target of $25.50 implies 22.4% downside potential. Shares have gained almost 35% over the past year.

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