Algonquin’s $2.5 Billion Renewables Sale Follows Activist Push

Algonquin Power & Utilities Corp. is selling its renewable energy business to a subsidiary of LS Power for up to $2.5 billion after pressure from an activist investor.

Shareholder Starboard Value LPhas pushed for a sale of the renewables business for over a year, saying that such a deal would result in lower leverage and ultimately should lead to a higher valuation.

“All things considered I would expect folks at Starboard are happy,” said David Quezada, a research analyst at Raymond James.

Utilities including American Electric Power Co. Inc. and Duke Energy Corp. have sold off renewable assets ...