Algonquin Power signs deal to sell renewable energy business for up to US$2.5B; Major wind project near Herbert, SK, is part of deal

Aug 15, 2024

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Algonquin Power & Utilities Corp. says it has signed a deal to sell its renewable energy business to a subsidiary of LS Power for up to US$2.5 billion. The corporate logo of Algonquin Power and Utilities Corp. is shown in a handout. THE CANADIAN PRESS/HO

Editor’s note: Algonquin Power is the proponent behind the Blue Hill Wind Project, a 177 megawatt wind farm near Herbert and Morse, Saskatchewan, which went online in recent years. Notably, wind turbines figure heavily in Algonquin’s corporate literature and website, and now they’re being sold.  

Algonquin Power & Utilities Corp. says it has signed a deal to sell its renewable energy business to a subsidiary of LS Power for up to US$2.5 billion.

Under the deal, which does not include Algonquin’s hydro business, LS Power will pay US$2.28 billion in cash at closing and up to US$220 million under an earn out agreement related to certain wind assets.

The deal came as the company, which keeps its books in U.S. dollars, reported a profit attributable to shareholders of US$200.8 million or 28 cents US per share for the quarter ended June 30 compared with a loss of US$253.2 million or 37 cents US per share a year ago.

Revenue totalled US$598.6 million, down from $627.9 million in the same quarter last year.

On an adjusted basis, Algonquin says it earned nine cents per share in its latest quarter, up from an adjusted profit of eight cents per share a year earlier.

The company also announced it was cutting its dividend to 6.5 cents US per share for the third quarter from 10.85 cents US per share in the second quarter.

This report by The Canadian Press was first published Aug. 9, 2024.

Companies in this story: (TSX:AQN)

 

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