Algonquin Power and Utilities Corp. announced that it has reached a final agreement to sell its renewable energy division, excluding hydro assets, to a fully owned subsidiary of LS Power for up to $2.5 billion.
Chris Huskilson, CEO of AQN, said, “We are pleased to announce this important transaction with LS Power, which is the result of a highly competitive strategic sale process.”
He added, “This major milestone, coupled with our previously announced agreement to support the sale of our Atlantica shares, delivers on our plan to transform AQN into a pure play regulated utility, optimize our regulated business activities, strengthen our balance sheet, and enhance our quality of earnings. We are confident that our path towards a pure play regulated utility supports our objective to create long-term value for our customers and shareholders.”
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Earlier this week, Algonquin Power and Utilities Corp had entered into an agreement to offload its take in the renewable energy business, excluding hydro assets, to a wholly-owned subsidiary of LS Power for a total value of up to $2.5 billion, excluding debt.
This deal includes $2.28 billion in cash at closing, subject to certain adjustments, and up to $220 million in additional cash under an earn-out agreement related to specific wind assets.
J.P. Morgan acted as the exclusive financial advisor to Algonquin Power & Utilities Corp. for this transaction.Â