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Algonquin Power & Utilities Corp T.AQN.PR.A


Primary Symbol: T.AQN Alternate Symbol(s):  AQN | T.AQN.PR.D | AGQPF

Algonquin Power & Utilities Corp. is a Canada-based diversified international generation, transmission, and distribution company. The Company through its two business groups, the Regulated Services Group, and the Renewable Energy Group, provides sustainable energy and water solutions through its portfolio of electric generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. The Company is engaged in renewable energy through its portfolio of long-term contracted wind, solar, and hydroelectric generating facilities. The Company owns, operates, and/or has net interests in over four gigawatts (GW) of installed renewable energy capacity. The Company is focused on its expanding global pipeline of renewable energy and electric transmission development projects, organic growth within its rate-regulated generation, distribution and transmission businesses, and the pursuit of accretive acquisitions.


TSX:AQN - Post by User

Comment by ol_grizon Jan 12, 2023 3:06pm
334 Views
Post# 35219301

RE:RE:Read between the lines

RE:RE:Read between the linesI'll second - no, I'll third that.  The only upside to the update would have been a withdrawal from the deal but to do so even if they intended it would not be prudent - kind of like Biden saying he's too old to run again. 

Combine this with the vagueness on asset sales and the drip surprise and you get the diffident response of the analysts who mostly mix their "meh" with significantly higher targets, suggesting they think there are more shoes to drop.  As it appears now, there's little reason to buy when the forecast is so limited in so many ways.

rustyblades wrote: You're probably right. I think they have heard from shareholders loud and clear that this is a bad deal. Still a risk on interpretation of "best efforts"

Hungus wrote: They are not proceeding with the Kentucky Power purchase.

They have no intention of extending the sale deadline past April 26th. No chance, whatsoever, of the regulatory approval by that date. They haven't even refiled their application with FERC yet (they will, just delaying it as long as possible). Won't commit to naming any assets on the chopping block to fund this purchase either.

They are obligated to use "best efforts" to purchase KP by April 26th in order to only get dinged with the break fee. So, they cannot come right out and say "we are cancelling the deal" - that would not be "best effort" and they would get sued to high heavens.

AQN is just running out the clock, that's all. KP deal is toast. Market *should* be rejoicing right now...




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