Aug 10 (Reuters) - Canada's Algonquin Power & Utilities (AQN.TO) on Thursday announced the resignation of CEO Arun Banskota and said it was considering a sale of its renewable energy unit, after activist firms urged action to reduce debt and boost earnings.
The decision to divest comes months after the company initiated a strategic review of the renewable energy division, following a push for changes by activist firms including Corvex Management and Starboard Value.
Algonquin said it had received interest for the renewable energy unit, but did not provide financial details or timelines for any potential deals.
The company said on Thursday JPMorgan (JPM.N) would act as its financial advisor for the possible sale of the renewable energy unit, which includes all of the company's non-regulated operating and development power generation assets.
Algonquin also posted a wider second-quarter loss of $253.2 million, compared with a loss of $33.4 million a year earlier.
Persons:
Arun Banskota, Christopher Huskilson, Nelson Ng, Tanay, Milla Nissi
Organizations:
Algonquin Power & Utilities, Thursday, Corvex Management, Capital, JPMorgan, Thomson
Locations:
Algonquin, Bengaluru