Algonquin Power ends deal for AEP's Kentucky operations (updated)

Algonquin Power & Utilities

17/04/2023 21:50

(Adds Ancora's comment)
       April 17 (Reuters) - Algonquin Power & Utilities Corp's
 AQN.TO  deal to buy the Kentucky operations of American
Electric Power  AEP.O  has fallen through, the companies said on
Monday, following multiple delays since its announcement nearly
1-1/2 years ago.
    The companies decided to terminate the deal as they could
not meet the conditions that were set prior to closing the sale
before April 26, AEP said in a statement.
        AEP was expected to receive about $1.2 billion in cash,
net of taxes and transaction fees, from the sale following a
$200 million cut in value in September last year.  urn:newsml:reuters.com:*:nL4N311355
  
        Ancora Holdings Group, a shareholder of Algonquin Power,
said it was pleased with Algonquin's decision to terminate the
"poorly-conceived" transaction following months of widespread
pushback from shareholders.
  
        It further added that the utilities firm's leadership
needed to establish momentum and execute its previously
disclosed plan to sell $1 billion in assets.
  
        Algonquin did not immediately respond to a Reuters
request for comment. The company had lowered its dividend in
January and said it was targeting additional asset sales to
reduce debt.
  
        AEP's Kentucky operations include Kentucky Power, a
utility that serves 165,000 customers and Kentucky Transco, a
regulated transmission business.
  


 (Reporting by Sourasis Bose and Arshreet Singh in Bengaluru;
Editing by Shailesh Kuber and Anil D'Silva)
 ((Sourasis.Bose@thomsonreuters.com;
Arshreet.Singh@thomsonreuters.com))