Algonquin Announces Agreement to Sell Ownership Stake in Chilean Utility

OAKVILLE, Ontario - Algonquin Power & Utilities Corp. (TSX/NYSE:AQN) has reached an agreement to sell its substantial ownership interest in Chilean water utility Suralis S.A. to an investment fund overseen by Toesca S.A. Administradora General de Fondos, as announced in a press release. The deal is estimated to be worth $126.5 million, with a potential earnout of up to $1.5 million.

Algonquin intends to utilize the proceeds to reduce debt and allocate capital towards its $3.2 billion capital plan, which spans the years 2026-2028. Toesca, a Chilean asset management firm focused on alternative investments, presently possesses roughly 30% ownership in Suralis. With this acquisition, Toesca will gain complete control over the water utility that serves the communities in Chile's Los Lagos and Los Rios regions.

Algonquin's CEO, Rod West, expressed that this transaction marks a significant milestone in simplifying their geographic scope while simultaneously reinvesting capital into their primary regulated utility operations. Carlos Saieh L., Toesca's CEO, stated that the acquisition aligns with their existing investment in Suralis. The transaction is anticipated to be finalized within the next two quarters, contingent on meeting standard closing conditions, such as obtaining merger control approval.

Centerview Partners LLC is providing financial advisory services, while Carey y Cía. Ltda. is acting as legal counsel for Algonquin.

Algonquin Power & Utilities Corp. operates as a diversified international generation, transmission, and distribution utility, serving over a million customer connections predominantly in the United States and Canada. The company's common shares are listed on both the Toronto Stock Exchange and the New York Stock Exchange, trading under the symbol AQN.