Algonquin Power Attracts Activist Investor Starboard
Algonquin Power & Utilities Corp., a Canadian energy company, has attracted the attention of activist investor Starboard Value LP. The company is said to be in talks with the New York-based hedge fund, according to people familiar with the matter.
Background of Algonquin Power
Algonquin Power is a publicly traded company that owns and operates a portfolio of regulated and non-regulated utility assets in the United States and Canada. It is headquartered in Oakville, Ontario, and has a market capitalization of about $7.5 billion. The company has a diversified portfolio of renewable energy, natural gas, and water assets.
Starboard Value’s Investment
Starboard Value is a New York-based hedge fund that specializes in activist investing. It is led by Jeffrey Smith, who is known for his aggressive approach to investing. The fund has a history of taking stakes in companies and pushing for changes to improve their performance.
Starboard Value is said to be in talks with Algonquin Power about taking a stake in the company. It is unclear how large the stake would be or what Starboard Value’s plans for the company would be.
Algonquin Power’s Performance
Algonquin Power has had a mixed performance in recent years. The company’s stock price has been volatile, and it has underperformed the broader market. In the past year, the stock has declined by about 10%.
The company has also faced some operational challenges. In 2020, it reported a net loss of $5.2 million, compared to a net income of $37.2 million in 2019.
Algonquin Power’s Response
Algonquin Power has not commented on the reports of Starboard Value’s interest in the company. However, the company has taken steps to improve its performance. In 2020, it announced a strategic review of its operations and a plan to reduce costs and improve efficiency.
Potential Impact of Starboard Value’s Investment
If Starboard Value takes a stake in Algonquin Power, it could have a significant impact on the company. Starboard Value has a history of pushing for changes to improve the performance of companies in which it invests. It is possible that the hedge fund could push for changes at Algonquin Power, such as cost-cutting measures or a shift in strategy.
Conclusion
Algonquin Power & Utilities Corp. has attracted the attention of activist investor Starboard Value LP. The company is said to be in talks with the New York-based hedge fund, and it is unclear how large the stake would be or what Starboard Value’s plans for the company would be. If Starboard Value takes a stake in Algonquin Power, it could have a significant impact on the company. Starboard Value has a history of pushing for changes to improve the performance of companies in which it invests, and it is possible that the hedge fund could push for changes at Algonquin Power.