Algonquin Power, American Electric Mutually End $2.65 Billion Kentucky Asset Sale
17 April 2023 - 1:55PM
Dow Jones News
By Adriano Marchese
Algonquin Power & Utilities Corp. and American Electric
Power Co. have agreed to terminate the $2.65 billion acquisition of
the Kentucky assets.
On Monday, the Canadian renewable energy and utility company
said its indirect subsidiary Liberty Utilities Co. came to a mutual
agreement with American Electric Power to terminate the stock
purchase agreement for Kentucky Power Co. and AEP Kentucky
Transmission Co.
In October 2021, Algonquin Power agreed to buy the assets from
American Electric Power as Algonquin looked to shift its assets
toward cleaner energy sources and meet its net-zero greenhouse gas
emissions target within its operations by 2050.
Analysts had shown a good measure of skepticism regarding the
deal, worried about the high price tag associated with the deal and
the regulatory challenges that came with closing the sale.
To reflect the challenges, the two companies had agreed to a
price reduction from $2.85 billion to $2.65 billion.
Algonquin Chief Executive Arun Banskota said Monday that the
decision to end the deal was due largely to the evolving macro
environment and that bringing the Kentucky assets into the fold was
no longer in the company's best interest.
American Electric said it would re-imagine its strategy for the
Kentucky assets to maximize the full potential of the operations.
The company said there is no change in its equity financing
forecast.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
April 17, 2023 07:40 ET (11:40 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Algonquin Power (NYSE:AQN)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Algonquin Power (NYSE:AQN)
Historical Stock Chart
Von Apr 2023 bis Apr 2024
