Algonquin Power & Utilities Corp., a Canadian utility company, has attracted the attention of activist investor Starboard Value LP, following another activist investor’s public call for an asset sale on Monday, according to sources familiar with the matter.
Starboard has engaged in friendly discussions with Algonquin Power for several weeks, as reported by one of the sources who preferred to remain anonymous when discussing private information. The exact size of Starboard’s stake in the company and the specific changes it is seeking from Algonquin Power have not been immediately disclosed.
Upon request for comments, a spokesperson for Algonquin declined to provide any statement, while Starboard has not yet responded to requests for comment.
Recently, Algonquin Power announced the termination of a US$1.5 billion deal to acquire Kentucky utilities from American Electric Power Co., as it was rejected by US regulators.
Another activist investor, Ancora Holdings Group, publicly expressed approval for Algonquin’s decision to terminate the deal and urged the company to expedite its plan to sell US$1 billion worth of assets. Ancora Holdings Group also revealed itself as a “meaningful shareholder” of Algonquin, although the specific duration and size of its stake have not been disclosed.
It’s worth noting that Starboard’s Chief Executive Officer, Jeffrey Smith, was appointed to the board of another Canadian company, Ritchie Bros. Auctioneers Inc., back in January. Starboard had made a significant investment of US$500 million, which played a crucial role in securing shareholder approval in March for Ritchie Bros. Auctioneers’ US$6 billion deal.