announced on Thursday that it will pursue a sale of its renewable energy division from its regulated utilities, putting the company on side with a number of activist investors who had demanded a substantial restructuring earlier this year.
Algonquin also announced that Arun Banskota has stepped down as chief executive officer. Chris Huskilson, a member of the board of directors since 2020, was appointed interim CEO. “We are confident that the intended sale will unlock Algonquin’s value as a pure-play regulated utility by simplifying our structure and enabling us to focus on lower risk regulated investment opportunities, with greater operational efficiency and capital discipline,” Mr. Huskilson said in a statement.“In addition, our objectives for the transaction are to support our current dividend, reduce our cost of capital, and maintain our investment grade BBB credit rating,” Mr. Huskilson said.
The shakeup continues a tumultuous period for the company, which had been embraced by investors for its steady growth, rising dividend and exposure to wind, solar and hydroelectric power in the United States and Canada.