Filing Flows › Entergy Texas (ETI-P) › Takeover & LBO
Is Entergy Texas (ETI-P) a takeover target?
A leveraged buyout at today's price plus 30% ($27.89 a share) would return a loss of all the money the buyer puts in to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $27.89 | today's $21.45 plus 30% |
| × shares | 466.3 million | |
| = Equity value | $13.0B | |
| + Debt refinanced | $34.6B | |
| − Cash | $3.9B | |
| = Enterprise value | $43.8B | 7.7× EBITDA of $5.7B |
| Fees | $876M | 2% of the price |
| New debt | $28.5B | 5.0× EBITDA at 7.65% a year; the limit that binds: 65% of the price |
| Buyer's own money | $16.2B | 36% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $14.6B | $6.2B | $2.2B | −$6.1B | $34.6B |
| Year 2 | $15.5B | $6.6B | $2.6B | −$6.8B | $41.4B |
| Year 3 | $16.4B | $6.9B | $3.2B | −$7.5B | $48.9B |
| Year 4 | $17.1B | $7.2B | $3.7B | −$8.1B | $56.9B |
| Year 5 | $17.6B | $7.4B | $4.4B | −$8.8B | $65.7B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 7.2× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $53.3B | |
| − Debt left | $65.7B | |
| = Buyer's equity | −$12.5B | |
| Money multiple | -0.77× | on $16.2B put in |
| Buyer's yearly return (IRR) | −100.0% |
Price against return
What the buyer makes at other premiums over today's $21.45.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $23.60 | −100.0% |
| 20% | $25.74 | −100.0% |
| 30% | $27.89 | −100.0% |
| 40% | $30.03 | −100.0% |
| 50% | $32.17 | −100.0% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $13.5B | |
| EBITDA, last 12 months | $5.7B | 42.2% of revenue |
| Depreciation and amortization | $2.6B | |
| Capital spending | $9.0B | |
| Debt | $34.6B | |
| Cash | $3.9B | |
| Share price | $21.45 | on Nov 6, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 8.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 21% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Entergy Texas would cost about $28.42 a share, $13.3B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $25.74 | $12.0B |
| Median | 32.5% | $28.42 | $13.3B |
| High end (a quarter paid more) | 51.8% | $32.56 | $15.2B |
Entergy Texas' latest quarter
Entergy Texas, Q3 2026: revenue $4.4B (+14% year over year), operating margin 33.9%, net earnings $940M, operating cash flow $2.2B. The chart follows the revenue to costs, profit and cash.
Questions
Is Entergy Texas being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Entergy Texas?
A leveraged buyout at today's price plus 30% ($27.89 a share) would return a loss of all the money the buyer puts in to a private-equity buyer over 5 years; no price, however low, gets a buyer to 20%.
What would a takeover of Entergy Texas cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Entergy Texas would cost about $28.42 a share, $13.3B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.