a note on AQN-KP deal In a note released today RBC believes that most shareholders that they have contacted do not want AQN to close the KP acquisition and that FERC’s denial gives them a degree of optionality to walk away from the deal and this would be favourable to the shareholders ..
“AQN may have some optionality to decide if it still wants to acquire KP. Based on our read of the FERC denial order, we believe that if AQN and AEP file another application to the FERC (AQN is required to use reasonable best efforts to close the transaction), they should be able to eventually get the transaction approved. However, the process could take longer than the April 26, 2023 Outside Date, and AQN may have the option to terminate the transaction and pay the $65 million termination fee. We believe shareholders would prefer that AQN does not move forward with the KP transaction.”