South Jersey Industries (SJI) to be acquired

South Jersey Industries (SJI) has a current dividend yield of 3.78% and is rated as “SAFE” by SimplySafeDividends. I hold SJI in my Low Yield Portfolio. In total SJI is 0.7% of my portfolio.

According to an analysis of the announcement by SimplySafeDividends South Jersey Industries (SJI) will continue to pay out its dividend through the close of the deal. If all goes smooth shareholders would see a 9% increase in the price of the stock along with dividend that would yield 2.8% through the close.

This means I will have to find a new home for that cash once the transaction closes.

South Jersey Industries, Inc. (NYSE: SJI) (SJI) and the Infrastructure Investments Fund (IIF), a private investment vehicle focused on investing in critical infrastructure assets, today announced that they have entered into a definitive agreement under which IIF will purchase SJI for $36.00 per share in cash, reflecting an enterprise value of approximately $8.1 billion.

“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,” said Mike Renna, President and CEO, SJI. “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. In addition, as a private company and with IIF’s support, we will have additional resources to continue to modernize our critical infrastructure, maintain our high standard of customer service at reasonable rates, and further enhance the safety, reliability and sustainability of our businesses.”

Mr. Renna continued, “This transaction is a testament to the achievements of our employees, and we are pleased that IIF recognizes the strength of our workforce and culture and shares our commitment to supporting the communities we serve. I would like to thank each of our employees for all they do each day to contribute to the success of SJI. I look forward to building on our strong foundation together.”

South Jersey Industries – South Jersey Industries, Inc. Enters into Agreement to be Acquired by the Infrastructure Investments Fund (