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

Watch TRP

[BSdetector2016]

This transaction will be a test for market receptivity towards asset shedding. Hopefully the activist investors will speed-up the process for AQN. Meanwhile Banskota is at the cottage doing nothing.

CALGARY, Alberta, July 24, 2023 (GLOBE NEWSWIRE) -- News Release – TC Energy Corporation (TSX, NYSE: TRP) (TC Energy or the Company) announced that it has entered into an agreement to monetize a 40 per cent interest in its Columbia Gas Transmission, LLC (Columbia Gas) and Columbia Gulf Transmission, LLC (Columbia Gulf) systems. Columbia Gas and Columbia Gulf will be held in a new joint venture partnership with Global Infrastructure Partners (GIP). Total proceeds for the transaction are expected to be $5.2 billion (US$3.9 billion) in cash, to be paid at closing, subject to certain customary adjustments. The value of the 40 per cent equity interest implies an enterprise value to a comparable EBITDA¹ multiple of approximately 10.5 times TC Energy’s base 2023 outlook and expected run-rate capital structure for the partnership entity.

[SargeX]

Hey BS I think TRP got creamed because the sell dollar amount was less than people expected. Hopefully, AQN sheds a good chunk/all of the renewables at a price that is more in line. As an aside, I actually like the TRP Columbia sell as it's only for 40% and they remain operators. I also think it is a good thing having someone else funding 40% of the maintenance and other costs going forward.

[BSdetector2016]

Hi Sarge, I think that the market's response to the news was over-blown, and I agree with your perspective on Columbia. I'm hoping to get back to break even on AQN within a year and, when I do, it will join ALA in the graveyard of never touch again companies, at least until there is wholesale change at the BoD and management level. Why Banskota got re-elected with over 90% blows my mind.

[SargeX]

Hey BSD Banskota being able to drive AQN into the ground is definitely disappointing but to me, it's no where near what Harris did to ALA. Luckily, the KPC deal fell through to ease part of the pain. I still believe in AQN's assets and am very pleased that some activists finally stepped up.  I did swap a few more of the 2023 AQN shares that we had bought for the long term and

[AlwaysLong683]

Like Sarge stated, analysts believe TRP should have received more for such a stake in these pipelnes.. Maybe that's what's taking AQN so long to sell of some of their assets - getting offers for what they believe is full value for them....? On the bright side for TCP, this one sale all on its own hit TRP's stated target of $5B worth of asset sales for 2023, so one assumes they don'