Dialing it down would help overamped utility

Algonquin Power & Utilities

27/04/2023 17:12

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Sharon Lam
       TORONTO, April 27 (Reuters Breakingviews) - After a
busted $2.6 bln takeover deal, expansion into Chile and a huge
share slump, Algonquin Power is now contending with two pushy
investors. Steady returns are the main appeal of such
businesses. Spinning off the renewable energy arm would help
restore some boring value.
    Full view will be published shortly.
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    CONTEXT NEWS
    Algonquin Power & Utilities said on April 17 that it had
mutually agreed to terminate a plan to buy American Electric
Power facilities in Kentucky, 18 months after they unveiled the
$2.8 billion deal. The two companies agreed in September 2022 to
reduce the price to $2.6 billion.
    They had been awaiting regulatory approval for the
transaction. Algonquin CEO Arun Banskota said the decision was
made “in light of the evolving macro environment.”

 (Editing by Jeffrey Goldfarb and Amanda Gomez)
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