Hedge fund Starboard asks Algonquin Power to sell renewable assets

Algonquin Power & Utilities

06/07/2023 14:46

July 6 (Reuters) - Activist hedge fund Starboard Value
on Thursday sent a letter to utility firm Algonquin Power &
Utilities  AQN.TO  asking it to sell a majority of its renewable
assets to reduce debt and improve earnings.
    Starboard, with a 7.5% stake, is the largest shareholder in
Algonquin which is grappling with a $7.5 billion debt burden
following a series of acquisitions in recent years.
    Algonquin said in May it would launch a review of its
renewable energy group, following a push by Corvex Management
and other activist firms for changes.
    "We believe the remaining regulated utility business, once
the unregulated business is sold, should be highly attractive to
public market investors," Starboard said in the letter on
Thursday.
    The renewable assets that the hedge fund urged to divest
include Algonquin's 42% stake in Atlantica Sustainable
Infrastructure  AY.O .
    Algonquin, whose shares fell 1.6% to C$10.94 on Thursday,
did not immediately respond to a request for comment.

 (Reporting by Sourasis Bose in Bengaluru; Editing by Shounak
Dasgupta)
 ((Sourasis.Bose@thomsonreuters.com))