South Jersey Industries, Inc. (SJI) gained in the current market after announcing that Infrastructure Investments Fund acquired the company. SJI values at $32.96, gaining more than 40% compared to yesterday’s closing price. The stock closed at $23.46 at the end of the last trading session. The stock volume traded in the last trading session was around 1.2 million shares. The current market cap of the company is around $2.64 billion.
Infrastructure Investments Fund acquires SJI
Infrastructure Investments Fund has reached a definitive agreement to acquire South Jersey Industries, Inc. (SJI) for $36.00 per share in cash, representing an enterprise value of approximately $8.1 billion. The agreement was announced by South Jersey Industries, Inc. and Infrastructure Investments Fund.
While continuing to support its 1,100-strong staff and local communities, SJI’s vision of building better today and tomorrow aligns with IIF’s long-term investment strategy in utility and infrastructure assets. Along with exceptional customer service, a great team and culture, SJI is committed to enhancing the quality of life for all individuals who live and work in its communities. Both SJI and IIF will continue to grow the company.
SJI: Key Financials 2021
The revenue in fiscal 2021 was $1.99 billion. The last year’s revenue was around $1.5 million. The 2021 net income was around $88 million. The net income was $150 million in fiscal 2020. This year the net income is down due to increased operating expenses. The EPS in 2021 is $0.80 or $1.62 in the last year.
SJI President and CEO Mike Renna Remarks
The SJI Board decided that now is the right moment to join forces with IIF as the US and New Jersey energy markets shift to low carbon and clean energy. Together, we will be well-positioned to implement SJI’s sustainable energy and decarbonization programs to support our State and regional environmental objectives. As a private corporation, we will have more resources to upgrade our vital infrastructure, provide excellent customer service at affordable prices, and improve our companies’ safety, dependability, and sustainability.
Conclusion
The company released two press releases on the same day. One was about the financial results of fiscal 2021, and the important news was about its acquisition. The stock is escalating despite the ongoing downfall in the stock market. The high valuation of the company is the reason behind it.
