Ancora Urges Algonquin’s Board of Directors to Accelerate Previously Announced Divestitures Following Termination of the Kentucky Power Transaction

Rhea-AI Summary

Ancora Holdings Group, a significant shareholder of Algonquin Power & Utilities Corp. (AQN), has issued a statement on the company's decision to terminate its stock purchase agreement with Kentucky Power Company and AEP Kentucky Transmission Company. This decision comes after significant pushback from shareholders and follows a 45% decline in Algonquin's stock price over the past year. Ancora urges the Board to expedite $1 billion in planned asset sales to deleverage the balance sheet and increase shareholder value. They emphasize that failure to act will likely lead to continued poor returns for investors and could trigger shareholder intervention.

Positive

• Termination of the unapproved stock purchase agreement may improve shareholder sentiment.
• Opportunity to quickly execute $1 billion in asset sales to refocus operations and enhance value.

Negative

• Algonquin's stock price has dropped by approximately 45% over the past year.
• Ongoing issues with capital allocation could indicate a lack of strategic direction.

Believes Algonquin’s Board Must Capitalize on Momentum and Expedite its $1 Billion in Planned Asset Sales Following Several Years of Poor Shareholder Returns

Highlights the Opportunity to Delever the Balance Sheet, Establish a Stronger Focus on Core Operations and Increase Shareholder Value

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.”

About Ancora

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).

View source version on businesswire.com: https://www.businesswire.com/news/home/20230417005825/en/

Longacre Square Partners

Charlotte Kiaie / Scott Deveau, 646-386-0091

ancora@longacresquare.com

Source: Ancora Holdings Group, LLC

FAQ

What is the significance of Ancora's statement regarding Algonquin Power & Utilities Corp. (AQN)?

Ancora's statement emphasizes the need for Algonquin to expedite its $1 billion asset sales to enhance shareholder value, especially after a prolonged decline in stock performance.

How has Algonquin's stock performance impacted shareholder confidence?

Algonquin's stock has fallen around 45% in the last year, leading to diminished shareholder confidence and calls for more assertive management actions.

What are the expected impacts of the terminated stock purchase agreement on Algonquin's financial strategy?

The termination allows Algonquin to focus on asset sales, which could help deleverage its balance sheet and potentially restore investor confidence.

Why did Ancora Holdings Group call for immediate asset sales from Algonquin?

Ancora believes immediate asset sales are necessary to refocus Algonquin's operations and improve the company's overall financial health and market perception.