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Algonquin Power & Utilities Corp T.AQN

Alternate Symbol(s):  AQN | T.AQN.PR.A | 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 AlwaysLong683on Jan 15, 2023 10:59am
286 Views
Post# 35224197

RE:RE:RE:RE:RE:Brookfield needs to swoop in...

RE:RE:RE:RE:RE:Brookfield needs to swoop in...Brookfield may be biding their time watching events unfold. A dividend cut to a utility company not only means its likely removal from Income and/or Dividend mutual funds, ETFs, and high-net-worth privately-managed investment portfolios, but also removal from consideration by investors large and small who, going forward, are looking to invest in reliable income-producing stocks.

If AQN is range bound at $7-10 CAD while the market awaits the final verdict on the Kentucky Power decision and asset sales, remaining investors (both large and small) may become despondent and be looking for an out at a premium. If Brookfield decides to swoop in at some point over the next 3-6 months or so and approach the Board with a lowball takeover offer that the BOD rejects, Brookfield is not afraid to go the hostile route, bypass the BOD, and take their offer straight to shareholders for a vote. If enough large shareholders show interest, the BOD may feel pressured to negotiate with Brookfield, perhaps getting them to sweeten the offer somewhat, then give it their blessing in order to save face. Only thing that would make management / BOD dig in their heels and not listen to sweetened offers is knowing that most of not all of the mangement and Board members would in all likelihood be dismissed shortly after the deal closes as I suspect Brookfield would simply add AQN's utlitiles portolio to their Infrastructure assets and the power portion to their Renewables segment.
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