CLEVELAND--(BUSINESS WIRE)--Ancora Holdings Group, LLC (together with its affiliates, “Ancora”), which is a meaningful shareholder of Algonquin Power & Utilities Corp. (TSX: AQN, NYSE: AQN) (“Algonquin” or the “Company”), today issued the following statement regarding the Company’s decision to terminate its stock purchase agreement with Kentucky Power Company and AEP Kentucky Transmission Company, Inc. (the "Transaction").
Fredrick D. DiSanto, Chairman and Chief Executive Officer of Ancora, and James Chadwick, President of Ancora Alternatives LLC, commented:
“We are pleased that Algonquin has decided to terminate this poorly-conceived Transaction following months of widespread pushback from shareholders. Given that Algonquin’s stock price has declined by approximately 45% over the past 12 months and stagnated over the longer term, leadership needs to establish momentum and execute on its previously disclosed plan to sell $1 billion in assets.
The Company’s disappointing long-term results and today’s extremely challenging market environment should compel the Board of Directors to keep its foot on the gas. Ancora – and presumably many other shareholders – believe that the Transaction’s termination should not provide the Company “more flexibility” to delay asset sales.1 To the contrary, Algonquin should promptly execute these asset sales in order to refocus Algonquin’s portfolio, delever the balance sheet, regain investor confidence and restore the Company’s trading multiple. Failure to do so will send a signal to the market that Algonquin is set on maintaining an unsustainable capital allocation policy and, in turn, likely result in shareholder intervention to put the Company on a path to long-awaited value creation.”
Founded in 2003, Ancora Holdings Group, LLC offers integrated investment advisory, wealth management and retirement plan services to individuals and institutions across the United States. The firm's comprehensive service offering is complemented by a dedicated team that has the breadth of expertise and operational structure of a global institution, with the responsiveness and flexibility of a boutique firm. For more information about Ancora, please visit https://ancora.net.
1 Source: Frequently Asked Questions -- Termination of Kentucky Power Stock Purchase Agreement (April 17, 2023).