Algonquin Power & Utilities Corp. agreed to sell its 64% stake in Suralis S.A., a Chilean water utility, for $126.5 million, the company said on Friday. The deal includes an earnout of up to $1.5 million, subject to customary closing conditions and regulatory approval.
The buyer, Toesca S.A. Administradora General de Fondos, already held a 30% stake in Suralis, bringing its total ownership to majority control. The transaction is expected to close within the next two quarters, with proceeds earmarked for debt reduction and reinvestment in Algonquin’s core regulated utility operations.
Suralis serves customers in Chile’s Los Lagos and Los Ríos regions. Algonquin, headquartered in Oakville, Ontario, operates primarily in the United States and Canada, serving over one million customers. The company’s capital investment plan for 2026–2028 totals $3.2 billion.
Centerview Partners LLC acted as financial advisor and Carey y Cía. Ltda. as legal advisor for Algonquin. Rod West, Algonquin’s CEO, said the deal advances the company’s strategy to streamline its geographic footprint while recycling capital into regulated utility businesses.
The transaction marks a strategic shift for Algonquin, which has been reducing non-core assets to focus on regulated utilities in North America.
