PNM Resources Inc. executives and their peers at Avangrid Inc. have again extended the deadline for the latter to buy PNM in a deal valued at more than $8 billion.
The cause of the delay is, as it was more than 15 months ago when the companies first pushed back their timeline, the lack of New Mexico Public Regulation Commission approval of a proposed benefits agreement worth about $300 million. PNM and Avangrid last month jointly asked the New Mexico Supreme Court to dismiss their appeal of the commission’s December 2021 denial and to send the case back to the commission, which has since brought on several new members.
The court hasn’t yet ruled on the motion, however, which pushed PNM and Avangrid to exercise a clause in their deal to push its closing deadline to July 20 from April 20.
“Our merger with Avangrid remains the right path to achieve a clean energy future and deliver additional benefits to our customers and communities,” PNM Chairman and CEO Pat Vincent-Collawn said in a statement. “As we continue to navigate the regulatory approval process in New Mexico, we remain focused on managing our standalone business to meet our customers’ needs across New Mexico and Texas and optimize our financial plans.”
In their late-2021 denial of the acquisition plan, the commission’s former members had cited concerns about Avangrid’s Maine utility service track record as well as an investigation into alleged spying of three executives of Iberdrola, the Spanish parent of Avangrid.
Speaking to analysts and investors in late February, Vincent-Collawn said she and her team were encouraged by some behind-closed-doors meeting between commissioners but acknowledged that PNM was in a holding pattern until the court remanded the case to the commission.
Shares of PNM (Ticker: PNM) rose about 1.3% to $49.40 in after-hours trading on the heels of the deadline extension news. Over the past six months, they have gained nearly 7%, growing the company’s market capitalization to nearly $4.2 billion.
