AEP cuts Kentucky operations sale deal value by $200 mln, extends timeline

Sept 30 (Reuters) – American Electrical Energy mentioned on Friday it might promote its Kentucky operations at about 7% decrease enterprise worth of $2.65 billion to a unit of Algonquin Energy & Utilities Corp , in contrast with the unique deal.

AEP expects to obtain about $1.2 billion in money, internet of taxes and transaction charges, as a substitute of its unique estimate of $1.45 billion.

The sale to Algonquin’s unit, Liberty, which was initially set to shut within the second quarter of 2022, is now anticipated to be finalised in January 2023 pending approval from the U.S. vitality regulator, the businesses mentioned on Friday. Liberty is the regulated utility enterprise of Algonquin Energy.

Columbus, Ohio-based AEP additionally mentioned it expects a third-quarter pre-tax loss starting from $180 million to $220 million as a result of decrease deal worth and prolonged timeline, however added that its working earnings forecast wouldn’t be impacted.

Brett Mattison, president and chief working officer (COO) of AEP’s Kentucky Energy, has been named president and COO of Southwestern Electrical Energy Firm, efficient Jan. 1, the ability firm mentioned.

AEP and Algonquin had introduced the unique deal in October final yr. AEP’s Kentucky operations embrace Kentucky Energy, a utility that serves 165,000 clients and Kentucky Transco, a regulated transmission enterprise.

Reporting by Ankit Kumar;
Modifying by Vinay Dwivedi

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