Algonquin Power's Chile Sale Seen as First of Multiple Sales
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1123 ET - Algonquin Power & Utilities' sale of its stake in Chilean water utility Suralis to Toesca for $126.5 million is a positive step toward streamlining its geographic footprint. Scotiabank's Robert Hope says the sale of its 64% stake supports "management's ongoing focus on its core U.S.-regulated utility operations." While the business represented about 4% of Algonquin's revenue, the analyst estimates the effects on EPS to be "neutral." It does, however, improve Algonquin's credit metrics, he adds. Hope thinks this might be the first of a number of other noncore divestitures, including "Bermuda utility (BELCO - $525m rate base) and smaller water utilities."
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