Starboard Sends Letter To Algonquin Power & Utilities Regarding Opportunities To Enhance Shareholder Value
Portfolio Pulse from Benzinga Newsdesk
Starboard Value LP has sent a letter to Algonquin Power & Utilities Corp. suggesting a sale of all or a substantial majority of the company's unregulated renewables business. Starboard believes this move could accelerate efforts to delever, lower the dividend payout ratio, and restore investor confidence. The firm also provided specific suggestions to guide Algonquin's publicly disclosed review process for the unregulated renewables business.
July 06, 2023 | 1:02 pm
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NEUTRAL IMPACT
Algonquin Power & Utilities Corp. may see a short-term impact on its stock price due to Starboard's suggestion of selling a majority of its unregulated renewables business. This could potentially restore investor confidence and lower the dividend payout ratio.
Starboard's suggestion to sell a majority of Algonquin's unregulated renewables business could potentially restore investor confidence and lower the dividend payout ratio. However, the actual impact on the stock price will depend on how the market perceives this potential move and whether Algonquin decides to follow through with the suggestion.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 100