Starboard takes stake of about 5% in Algonquin Power - WSJ (updated)

Algonquin Power & Utilities

30/06/2023 24:32

(Adds details from WSJ report in paragraphs 2 & 4, background)
       June 29 (Reuters) - Starboard Value has gained a more
than 5% stake in Algonquin Power & Utilities  AQN.TO , the Wall
Street Journal reported on Thursday, citing people familiar with
the matter. 
    The activist hedge fund has privately held talks with
Algonquin about its belief that the company's core
regulated-utilities business is undervalued, the newspaper
reported.
        Starboard thinks investors are not giving the company
credit for how much value it could fetch from a sale of its
renewable-energy operation, the WSJ report said.
  
        Algonquin had 
    announced
     in May that it had initiated a strategic review of its
renewable energy group, following a push by Corvex Management,
which 
    built
     a stake in the company
    
      
    
     and other activist firms for changes. 
  
        Starboard is pushing Algonquin to follow through with
the strategic review, the WSJ reported.
  
        Algonquin owns and operates regulated utilities, as well
as power generating and water assets, across Canada and the
United States, with its regulated business serving more than 1
million customers, according to its website. 
  
        The company is grappling with a $7.5 billion debt burden
 following a series of acquisitions in recent years. 
  
        Starboard Value and Algonquin Power did not immediately
respond to requests for comment. 
  

 (Reporting by Chandni Shah in Bengaluru; Editing by Maju
Samuel)
 ((Chandni.shah@thomsonreuters.com;))