Algonquin Power to sell renewables business, cuts Q3 dividend; shares fall

Algonquin Power & Utilities

09/08/2024 15:29

** Shares of Algonquin Power & Utilities Corp  AQN.TO  fall
13.2% to $7.37
    ** Co to sell its renewable energy business, excluding the
hydropower operations, to a unit of LS Power for up to $2.5
billion
    ** Co declares Q3 dividend of $0.065, a 40% decrease from
its Q2 dividend
    ** AQN says it will retain its capital expenditures at
regulated utilities to slightly above maintenance requirements
    ** TD Cowen analysts note that while the valuation of the
transaction is consistent with investor expectations, the market
will react negatively to the dividend cut, its plans to restrain
capex, and the lack of any mentions of share buybacks in Q2
results
    ** Including session's moves, stock down 12.4% YTD

 (Reporting by Vallari Srivastava in Bengaluru)
 ((Srivastava.Vallari@thomsonreuters.com;))