NJBPU approves $8.1B SJI acquisition (updated)

Dawn Furnas//January 25, 2023

NJBPU approves $8.1B SJI acquisition (updated)

Dawn Furnas//January 25, 2023

UPDATED 11:54 a.m. ET FEB. 2: Infrastructure Investments Fund’s acquisition of South Jersey Industries was made official Feb. 1, as planned.

“The completion of this transaction marks an exciting new chapter for SJI,” Mike Renna, president and CEO of SJI, said in a statement. “We are excited to join forces with IIF and continue to support the environmental goals of our state and region through investing in sustainability and clean energy initiatives. Looking ahead, we will continue to leverage our talented workforce to build a better today and tomorrow.”

Editor’s note: This is an update to the original story, which published Jan. 25 and continues below.


The New Jersey Board of Public Utilities on Jan. 25 approved the Infrastructure Investments Fund’s previously announced $8.1 billion acquisition of Folsom-based South Jersey Industries, an energy infrastructure holding company. 

The action is the final regulatory approval needed to complete the deal, which is expected to close Feb. 1, the organizations said. 

According to the initial February 2022 announcement, SJI will remain locally managed and operated with its headquarters in Folsom. CEO Mike Renna and the current management team will continue to lead SJI. 

Once the deal closes, SJI will cease trading on the New York Stock Exchange and become a private company. 

SJI also said it notified the NYSE that it is voluntarily delisting its 5.625% Junior Subordinated Notes due 2079 and its Corporate Units from the NYSE. The company will file Form 25 with respect to the delisting on or about Feb. 6. 

In a joint statement, the companies said, “We are pleased that the NJ BPU recognizes the significant benefits this partnership presents for the communities in which SJI operates.” 

Under the terms of NJBPU’s approval, SJI’s commitments include:  

  • $75 million in financial benefits for SJI subsidiaries Elizabethtown Gas and South Jersey Gas customers, including a rate credit to all customers and bill relief for certain accounts in arrears due to the COVID-19 pandemic
  • $5 million in community contributions, which may include charitable, educational, community support and economic development efforts
  • $2.5 million in contributions to NJ SHARES (not earmarked for Elizabethtown Gas or South Jersey Gas customers), to assist low-income customers with payment of their utility bills

Before the deal closes, SJI’s board will declare a “stub period” dividend as allowed by the transaction. The dividend will be in an amount equal to $0.1499 per share of common stock and payable to stockholders as of the close of business on the last day that common stock is traded on the NYSE, which is expected to be Feb. 1. 

“As energy markets across the U.S. and New Jersey accelerate the transition toward low carbon and renewable energy, the SJI Board determined that now is the opportune time to join forces with IIF,” Renna said when the deal was originally announced. “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.”