Algonquin (NYSE: AQN) exits Chilean water utility to fund $3.2B plan
Rhea-AI Filing Summary
Algonquin Power & Utilities Corp. (AQN) announced an agreement to sell its approximately 64% ownership stake in Chilean water utility Suralis S.A. to a fund managed by Toesca S.A. Administradora General de Fondos. The transaction is expected to generate $126.5 million in proceeds, plus an earnout opportunity of up to $1.5 million.
AQN plans to use the proceeds for debt paydown and to support capital recycling into its $3.2 billion capital plan for 2026–2028, aligning with its goal of simplifying its geographic footprint and focusing on core regulated utility businesses. Closing is expected within the next two quarters, subject to customary conditions, including merger control approval.
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Filing Explained
Toesca, the proposed buyer of AQN’s approximately 64% Suralis stake, already owns approximately 30% of Suralis; the announced transaction remains subject to closing conditions, including merger-control approval.
Key Figures
Ownership stake sold: approximately 64%
Sale proceeds: $126.5 million
Earnout opportunity: up to $1.5 million
+3 more
6 metrics
Ownership stake sold
approximately 64%
Ownership stake in Suralis S.A. being sold by Algonquin Power & Utilities Corp.
Sale proceeds
$126.5 million
Expected total proceeds from sale of Suralis stake, in U.S. dollars
Earnout opportunity
up to $1.5 million
Additional potential proceeds linked to the Suralis transaction
Capital plan
$3.2 billion
Algonquin’s capital plan for 2026–2028 to be supported by recycled capital
Expected closing period
within the next two quarters
Anticipated timing to close the Suralis sale, subject to conditions
Existing Toesca ownership
approximately 30%
Toesca’s existing ownership stake in Suralis prior to acquiring AQN’s stake
Key Terms
earnout, capital recycling, merger control approval, foreign private issuer, +1 more
5 terms
earnout financial
"plus an earnout opportunity of up to $1.5 million"
An earnout is a financial agreement in which part of the purchase price for a business is paid later, based on the company's future performance. It acts like a bonus system, where sellers earn extra money if the business hits certain goals, aligning their interests with the buyer’s success. Investors pay attention to earnouts because they influence the total deal value and can affect the company's future financial health.
capital recycling financial
"to facilitate capital recycling into the Company’s $3.2 billion capital plan"
Capital recycling is a strategy where a company sells mature or non-core assets to free up cash, then uses that money to invest in new projects or pay down debt. For investors, it matters because it can boost returns and growth without needing new funding, while also revealing how management chooses to deploy company resources—like selling an old house to fund a new one that may earn more or cost less to maintain.
merger control approval regulatory
"subject to customary closing conditions, including merger control approval"
foreign private issuer regulatory
"REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16"
A foreign private issuer is a company organized outside the United States that meets tests showing it is primarily foreign-controlled and therefore qualifies for a different set of U.S. reporting rules. For investors, that means the company files less frequent or differently formatted disclosures with U.S. regulators and may follow home-country accounting and governance practices, so buying its stock is like dining at a well-reviewed restaurant that follows its home kitchen’s rules instead of the local menu — you get access but should check what standards apply.
forward-looking statements regulatory
"Certain statements included in this news release constitute "forward-looking statements""
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
FAQ
What ownership stake in Suralis is AQN (Algonquin Power & Utilities Corp., symbol AQN) selling?
AQN is selling its approximately 64% ownership stake in Chilean water utility Suralis S.A. to a fund managed by Toesca S.A. Administradora General de Fondos, a Chilean asset manager focused on alternative investments.
How much cash will AQN (AQN) receive from the Suralis sale?
AQN expects total proceeds of $126.5 million from the sale of its Suralis stake, plus an additional earnout opportunity of up to $1.5 million, all amounts presented in U.S. dollars.
How does AQN (AQN) plan to use the proceeds from the Suralis transaction?
AQN expects to use the proceeds primarily for debt paydown and to recycle capital into its $3.2 billion capital plan for the 2026–2028 period.
When is the Suralis transaction involving AQN (AQN) expected to close?
The sale of AQN’s stake in Suralis is expected to close within the next two quarters, subject to customary closing conditions, including merger control approval.
Who is acquiring AQN’s (AQN) stake in Suralis?
AQN’s approximately 64% stake in Suralis will be acquired by a fund managed by Toesca S.A. Administradora General de Fondos, which already owns about 30% of Suralis.
What strategic goal does the Suralis sale support for AQN (AQN)?
AQN states the Suralis sale is an important step in simplifying its geographic footprint while recycling capital into its core regulated utility businesses.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 6-K
_______________________
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
Date: August 28, 2026
Commission File Number: 001-37946
_______________________
| Algonquin Power & Utilities Corp. | ||
(Translation of registrant’s name into English)
_______________________
354 Davis Road
Oakville, Ontario, L6J 2X1, Canada
(Address of principal executive offices)
_______________________
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F □ Form 40-F x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): □
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): □
EXHIBIT INDEX
The following exhibits are filed as part of this Form 6-K:
| Exhibit | Description | ||||
| 99.1 | Press Release dated August 28, 2026 | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ALGONQUIN POWER & UTILITIES CORP. | |||||
| (registrant) | |||||
| Date: August 28, 2026 | By: /s/ Robert Stefani | ||||
| Name: Robert Stefani | |||||
| Title: Chief Financial Officer | |||||
Algonquin Announces Agreement to Sell Ownership Stake in Chilean Utility
Agreement to simplify geographic footprint
Transaction expected to close within the next two quarters
OAKVILLE, Ontario - August 28, 2026 - Algonquin Power & Utilities Corp. (TSX/NYSE: AQN) ("AQN", "Algonquin" or the "Company") today announced it reached an agreement to sell its approximately 64% ownership stake in Chilean water utility Suralis S.A. (“Suralis”) to a fund managed by Toesca S.A. Administradora General de Fondos (“Toesca”), a Chilean asset manager that specializes in alternative investments.
Total proceeds from the sale are expected to be $126.5 million, plus an earnout opportunity of up to $1.5 million. Proceeds from the transaction are expected to be used for debt paydown and to facilitate capital recycling into the Company’s $3.2 billion capital plan for 2026-2028. All amounts are shown in United States dollars ("U.S. $" or "$"), unless otherwise noted.
“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 AQN. “I want to thank our customers and the communities in the Los Lagos and Los Rios regions for allowing us to serve as their trusted water partner, supplier, and neighbor. I also want to recognize the entire Suralis team for their unwavering commitment to our customers.”
“This acquisition is a natural fit for Toesca, complementing our existing approximately 30% ownership in Suralis and allowing us to build on the foundation of exceptional customer service and community engagement that Suralis has fostered,” said Carlos Saieh L., Chief Executive Officer of Toesca. “We expect a smooth transition as we continue to provide water to customers and their communities.”
The transaction is expected to close within the next two quarters and is subject to customary closing conditions, including merger control approval.
Centerview Partners LLC is acting as financial advisor and Carey y Cía. Ltda. is acting as legal counsel to Algonquin.
About Algonquin Power & Utilities Corp. and Liberty
Algonquin Power & Utilities Corp., parent company of Liberty Utilities Co., is a diversified international generation, transmission, and distribution utility. AQN is committed to providing safe, secure, reliable, cost-effective, and sustainable energy and water solutions through its portfolio of generation, transmission, and distribution utility investments to over one million customer connections, largely in the United States and Canada. AQN's common shares, preferred shares, Series A, and preferred shares, Series D are listed on the Toronto Stock Exchange under the symbols AQN, AQN.PR.A, and AQN.PR.D, respectively. AQN's common shares and Series 2019-A subordinated notes are listed on the New York Stock Exchange under the symbols AQN and AQNB, respectively.
Visit AQN at www.algonquinpower.com and follow us on X.com @AQN_Utilities.
Caution Regarding Forward-Looking Information
Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities laws in each of the provinces and territories of Canada and the respective policies,
regulations and rules under such laws and "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). The words "will", "expects", “would”, "believes", "estimates", "targets", "forecast", "outlook", "guidance", "projected" (and grammatical variations of such terms) and similar expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Specific forward-looking statements in this news release include, but are not limited to, statements regarding the sale of the Company’s ownership stake in Suralis, including the expected proceeds of the sale, the timing of closing of the transaction, the earnout opportunity, the expected use of proceeds from the transaction, the transition of operations to Toesca and the impact thereof on customers and communities, and the impact of the transaction on the Company. These statements are based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, including assumptions based on historical trends, current conditions and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. AQN cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. Forward-looking statements contained herein are provided for the purposes of assisting in understanding the Company and its business, operations, risks, financial performance, financial position and cash flows as at and for the periods indicated and to present information about management's current expectations and plans relating to the future and such information may not be appropriate for other purposes. Material risk factors and assumptions include those set out in AQN's Annual Information Form and Annual Management Discussion & Analysis, each for the year ended December 31, 2025, and Management Discussion & Analysis for the three and six months ended June 30, 2026, each of which is or will be available on SEDAR+ and EDGAR.
Given these assumptions and risks, undue reliance should not be placed on these forward-looking statements, which apply only as of their dates. Other than as specifically required by law, AQN undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.
Non-GAAP Measures
AQN uses a number of financial measures to assess the performance of its business lines. Some measures are calculated in accordance with generally accepted accounting principles in the United States ("U.S. GAAP"), while other measures do not have a standardized meaning under U.S. GAAP. These non-GAAP measures include non-GAAP financial measures and non-GAAP ratios, each as defined in Canadian National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure. AQN's method of calculating these measures may differ from methods used by other companies and therefore may not be comparable to similar measures presented by other companies.
Contacts
Investor Inquiries:
Brian Chin - Vice President, Investor Relations
Amanda Bersing – Manager, Investor Relations
Algonquin Power & Utilities Corp.
E-mail: InvestorRelations@APUCorp.com
Telephone: (905) 465-4500
Media Inquiries:
Stephanie Bose
Senior Director, Corporate Communications
Algonquin Power & Utilities Corp.
E-mail: Corporate.Communications@libertyutilities.com
Telephone: (905) 465-4500