Algonquin Power & Utilities (US:AQN) Prnewswireยท2024-05-28 10:30Core Viewpoint - Algonquin Power & Utilities Corp. (AQN) is progressing towards its strategic transformation into a pure-play regulated utility by entering into a support agreement with Energy Capital Partners and Atlantica Sustainable Infrastructure plc, facilitating the acquisition of Atlantica [1][2][3] Group 1: Transaction Details - Bidco will acquire 100% of Atlantica's shares for $22.00 per share in cash, representing an 18.9% premium to Atlantica's closing share price on April 22, 2024, and a 21.8% premium to the 30-day volume weighted average trading price as of the same date [2] - The transaction values Atlantica at approximately $2,555 million, with AQN's 42.2% stake valued at about $1,077 million [2] - AQN plans to use the proceeds from the transaction to reduce debt and recapitalize its balance sheet as part of its strategic transition [2] Group 2: Strategic Goals - The interim CEO of AQN, Chris Huskilson, emphasized that optimizing the value of the investment in Atlantica was a priority, and supporting the agreement aligns with the goal of simplifying the company's structure [3] - The exit from the financial investment in Atlantica is viewed as a significant step in AQN's strategic transition towards focusing on regulated utility operations [3] Group 3: Approval and Timeline - The transaction is subject to shareholder approval, court sanction, and various regulatory approvals, including those under the Hart-Scott-Rodino Act and from the Federal Energy Regulatory Commission [4] - The expected completion of the transaction is anticipated in the fourth quarter of 2024 or early first quarter of 2025 [4] Group 4: Company Overview - AQN is a diversified international utility with approximately $18 billion in total assets, providing energy and water solutions to over one million customer connections primarily in the U.S. and Canada [5] - The company has over 4 GW of installed renewable energy capacity [5]