American Electric Power accepts lower price for Kentucky sales, extends closing
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American Electric Power (NASDAQ:AEP) has agreed to sell its Kentucky operations' to Liberty at reduced price of $2.646B, compared to the prior $2.846B valuation (including debt), as per the amended agreement the company announced on Friday.
Under the deal first announced in Oct. 2021, Liberty, the regulated utility business of Algonquin Power & Utilities (NYSE:AQN), will acquire AEP's Kentucky operations by purchasing all the stock of Kentucky Power and AEP Kentucky Transco at reduced price.
Closing of the transaction is extended to Jan. 2023, subject to approval from Federal Energy Regulatory Commission due by the end of this year.
The Ohio-based electric public utility company AEP said it expects to account for a loss of $180M-220M in Q3 2022 due to the change in sales agreement.
Total of $1.2B cash is estimated to be received by AEP, upon closing.
AEP stock is up 0.5% in pre-market.
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