AQN - Starboard builds greater than 5% stake in Algonquin Power - WSJ

2023-06-30 07:15:25 ET

Algonquin Power & Utilities ( NYSE: AQN ) +2.4% pre-market Friday following a report from The Wall Street Journal that Starboard Value has amassed a larger than 5% stake in the company and is pushing to follow through with a previously announced strategic review of its renewable energy division.

The activist hedge fund reportedly has held private talks with Algonquin ( AQN ) executives about its belief that the company's core regulated utilities business is undervalued.

Starboard also believes investors are not giving the company credit for how much value it could fetch from a sale of its renewable energy operation, according to the report.

When Algonquin ( AQN ) reported its Q1 results in May, the company said it had launched a strategic review of its renewable energy group, which includes all of its non-regulated operating and developing power generation assets.

More on Algonquin Power & Utilities:

• Financial and valuation comparison to sector peers
• Analysis: Algonquin And Atlantica: Strategic Reviews Could Be A Major Catalyst
• Stock price return: Up 23.5% YTD, down 38% in the past 12 months

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