Algonquin Power & Utilities Corp T.AQN

Here's the reason

[bmbruce]

"FERC denies approval of the Kentucky Power Nelson Ng, CFA (Analyst) [phone], [e-mail] It is unclear to us why the transaction was denied, but we believe the end result may be that the transaction is further delayed (rather than not take place at all) as AQN and AEP work with FERC to resolve the outstanding issues. Additional colour on why the transaction was denied will be available when the decision document is filed. The shares of AQN have traded higher on the news as a potential termination of the transaction would provide the company with greater financial flexibility (would not need to make a $1.4 billion drawdown on its floating credit facility) and reduce the company's exposure to floating interest rates. Details • FERC denies pending Kentucky Power acquisition. A short summary was posted on the U.S. Federal Energy Regulatory Commission (FERC) website, indicating that FERC denied AQN's proposed $2.65 billion ($1.4 billion equity purchase price) acquisition of Kentucky Power from AEP. A FERC approval was the only approval required prior to closing the acquisition, and management previously expected to receive FERC approval in December 2022, and close the transaction in January 2023. • Potentially a further delay rather than an outright termination of the Kentucky Power acquisition. We believe that AQN and AEP will work to FERC to resolve the outstanding issues, as we don't see any fundamental reasons why AQN should not be allowed to acquire Kentucky Power. If the transaction is delayed, in our view, it would provide AQN with additional time to potentially divest assets to limit its floating interest rate exposure when the transaction finally closes. If the transaction is ultimately terminated, it would improve AQN's balance sheet, and reduce the company's exposure to floating interest rates."

[Karl63]

Interesting; does this mean that AQN could walk away from the Kentucky deal, without penalty?  Would they treat it as a lifeline and enthusiastically do that? 

[Indicator]

talk about a drama stock - LOL - nothing blue chip about this name anymore - LOL

[RayDonovan78]

I can not find it on FERC's web site. Please post link

[liljohnnyjoke]

why doesn't AQN have an NR out about it? why should you have to search elsewhere for that news?

[RayDonovan78]

This so far has just come from one analyst and we all know how trustworthy they can be.

[pennydredful]

Well   the  anayst  is   with   RBC   Dominion   and   he says   the    info.   comes   from   FERC   webste. 

[PaperBoi222]

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[PaperBoi222]

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[RayDonovan78]

I could not find it on FERC. Go take a look and post a link if you can find it.

[SargeX]

This is definitely weird as it sure doesn't seem to be released anywhere other than RBC. Here's the actual note from RBC Direct Investing website below. I've always hated the KPC take-over and thought seriously about selling half our shares at the time of the announcement (but unfortuantely, didn't), It would sure be terrific if AQN could just walk away (even if there is a break

[BSdetector2016]

Oh my: this could be Santa's little gift! Banscota be damned! 

[bmbruce]

here's the link to FERC's website regarding the denial of the tranaction... pg. 6, E22 https://www.ferc.gov/news-events/news/summaries-december-2022-commission-meeting

[pennydredful]

SEE    item     E-22    .    Liberties   is   a   sub.   of    AQN.

[dalesio_98]

FERC denies, without prejudice, a proposed transaction E-22, Liberty Utilities Co., Docket No. EC22-26-000.This order denies, without prejudice, authorization,pursuant tosection 203 of the Federal Power Act,for a proposed transaction where Liberty Utilities Co. seeks to acquire all issued and outstanding common shares of AEP Kentucky Transmission Company, Inc. and Kentucky Power Company. https

[pennydredful]

THE  reasons   are   given   at   a later   date   when   the   final  definitive   ruling  is laid down. This   is just a heads   up  as   to   what   is coming. 

[pennydredful]

I   am   wrong   here  as   the reasons   are   now   out.  

[Tommy123]

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