Algonquin Power & Utilities Corp. (AQN.TO) announced on Friday that it has reached an agreement to divest its renewable energy segment, excluding hydroelectric operations, to a wholly-owned subsidiary of LS Power for a total consideration of up to $2.5 billion.
This transaction comprises of $2.28 billion in cash payable at closing, along with potential earn-out payments of up to $220 million associated with specific wind assets.
The company expects that it will receive approximately $1.6 billion in net cash proceeds after settling construction financing, as well as accounting for taxes, transaction fees, and other closing adjustments.
The completion of this deal is anticipated in the fourth quarter of 2024 or the first quarter of 2025, pending regulatory approvals.
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