Home / Business and Economy / Algonquin Power Eyes US for Incorporation, Cites Strategic Benefits
Algonquin Power Eyes US for Incorporation, Cites Strategic Benefits
11 Aug
Summary
- Algonquin Power plans to incorporate in Delaware, USA, aligning with its 80% US asset footprint.
- The company expects to maintain its Toronto presence and establish headquarters in Chicago, Illinois.
- Second-quarter net profit saw a decrease compared to the previous year, falling to $4.9 million.
Algonquin Power & Utilities Corp. (AQN) has announced plans to re-domicile its country of incorporation to the United States, specifically Delaware. This strategic decision is driven by the fact that over 80 percent of AQN's operations are located in the U.S., with less than five percent in Canada. The company anticipates several benefits from this move, including a more aligned corporate structure with its asset footprint, reduced cross-border tax inefficiencies, and a stronger long-term financial profile.
This redomiciling is also expected to broaden AQN's access to capital and potentially pave the way for inclusion in certain U.S. equity indices and funds. While the legal address will change, Algonquin's trading activities will remain unaffected, continuing its listings on both the Toronto Stock Exchange and the New York Stock Exchange.
The company intends to maintain a significant operational presence in Oakville, Ontario, while establishing its executive leadership headquarters in Chicago, Illinois. For the second quarter, Algonquin reported a net profit of $4.9 million, a decrease from $14.8 million in the same quarter last year. Adjusted net profit also fell to $29.2 million from $33.6 million year-over-year, with adjusted earnings per share of $0.04 missing the Zacks Consensus Estimate of $0.05.
