Algonquin sells Chilean water utility stake for $126.5M in refocus on North America
What's the deal? Algonquin Power & Utilities Corp.Dealroom has a profile for this one. Try Dealroom → (TSX/NYSE: AQN) has agreed to sell its roughly 64% stake in Chilean water utility Suralis S.A.Dealroom has a profile for this one. Try Dealroom → to a fund managed by Chilean asset manager Toesca S.A.Dealroom has a profile for this one. Try Dealroom → The deal is worth $126.5 million, plus an earnout of up to $1.5 million.
Who's involved? Algonquin is a diversified international utility serving over one million customer connections, largely in the US and Canada. Toesca, which specialises in alternative investments, already holds about 30% of Suralis, a water supplier in Chile's Los Lagos and Los Rios regions.
What's the endgame? Algonquin plans to use the proceeds for debt paydown and to recycle capital into its $3.2 billion capital plan for 2026-2028. The sale trims its international footprint in favour of core regulated utilities in North America.
Why now? "This transaction represents an important step in simplifying our geographic footprint while concurrently recycling capital into our core regulated utility businesses," said Rod West, chief executive officer of Algonquin.
What's next? The deal is expected to close within the next two quarters, subject to customary closing conditions including merger control approval. Centerview PartnersDealroom has a profile for this one. Try Dealroom → is financial advisor and Carey y Cía.Dealroom has a profile for this one. Try Dealroom → is legal counsel to Algonquin.
The signal: The sale reflects a broader push among utilities to shed non-core assets and concentrate capital on regulated home markets, where returns are steadier and oversight is familiar. For Toesca, consolidating control of Suralis deepens its bet on Chilean water infrastructure.
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