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Algonquin Power & Utilities Corp. (AQN)
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Atlantica Sustainable Infrastructure plc (AY)
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Algonquin Power & Utilities Corp. (AQN)
I’m a longtime holder of both these names.
I understand AQN is a very large shareholder of AY. I read today that a sale of AY is maybe imminent. AY has been moving up last few days.
Please update this, I’d like to know details, the likely sale price/share range, and the effect on share prices of both company.
Thank you!
AQN owns 42% of AY, worth US$1.044B at today's price. This compares with AQN current market cap of $4.51B, so it would be significant to AQN, even after any taxes. AY shares are down 0.4% YTD, though have moved up $4/share in the past three weeks. Energy Capital Partners is in 'advanced talks' to acquire the company. We cannot of course know the deal price, but with the stock already rising 9% on the news we would expect a premium to be relatively low, perhaps in the 15% range, for AY to consider a bid. We would ballpark a range from $21 to $24.50 on AY. AQN moved up about 7% this week, so we might expect a sale to move it up about another 7% to 8%, depending on the price. AQN has been looking for some time to sell assets, so some speculation has already been in the share prices of both.