SCHEDULE: Starboard Value Reduces Stake in Algonquin Power & Utilities

Starboard Value LP and its affiliates sold 6.3 million shares of Algonquin Power & Utilities Corp., reducing their aggregate beneficial ownership to 7.4%.

Summary

• Starboard Value LP and its affiliated funds, including Starboard Value and Opportunity Master Fund III LP, Starboard X Master Fund II LP, and Starboard G Fund, L.P., collectively sold 6,300,000 common shares of Algonquin Power & Utilities Corp. on March 30, 2026.
• The shares were sold at a price of $6.0300 per share, totaling approximately $37,989,000 in proceeds.
• Following these transactions, Starboard Value LP and its reporting persons beneficially own an aggregate of 57,215,415 common shares, representing 7.4% of the Issuer's outstanding common shares.
• The aggregate percentage of shares owned is based on 768,691,822 shares outstanding as of March 5, 2026.
• Gavin T. Molinelli, a Senior Partner of Starboard Value LP and a director of Algonquin Power & Utilities Corp., directly owns 25,995 shares, which were awarded to him in his capacity as a director.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a moderately negative development, as a significant reduction in stake by an activist investor often signals a diminished belief in the company's future upside or a strategic shift away from the investment.

Negatives

• Starboard Value LP, a prominent activist investor, significantly reduced its stake in Algonquin Power & Utilities Corp. by selling 6.3 million shares.
• The sale of shares by an activist investor could signal a lack of confidence in the company's near-term prospects or a shift in their investment strategy.

Risks

• The reduction in stake by a significant activist investor like Starboard Value could be perceived negatively by the market, potentially leading to downward pressure on the stock price.
• A decreased ownership percentage by an activist investor may reduce their influence on corporate governance and strategic decisions, which could be a risk if their activism was seen as a catalyst for positive change.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from Algonquin Power & Utilities Corp. or Starboard Value LP regarding the Issuer's future performance or strategic direction, beyond the implications of Starboard's reduced stake.

Industry Context

StockSavvy.ai notes that a reduction in stake by a prominent activist investor like Starboard Value in a utility company such as Algonquin Power & Utilities Corp. can be interpreted in several ways. It could suggest that Starboard believes its activist objectives have been largely achieved, or that the remaining upside potential no longer justifies the current level of investment. Alternatively, it might indicate a reallocation of capital to other opportunities deemed more attractive, or a loss of conviction in the company's ability to execute its strategy effectively. This move could prompt other institutional investors to re-evaluate their positions in Algonquin, especially given the typically stable nature of the utility sector.

Corporate Governance

Stakeholder Impact

• Shareholders: May interpret the share sales by Starboard Value as a negative signal, potentially leading to decreased investor confidence and downward pressure on the stock price.
• Management: Could face increased scrutiny regarding the company's performance and strategic direction, especially if the activist's exit is seen as a vote of no confidence.

Key Dates

Recommendation

While the significant share sales by Starboard Value are a negative signal, the remaining 7.4% stake still represents a substantial position. Investors should hold to observe if Starboard continues to divest or if the company's performance can mitigate the impact of this activist's partial exit. A 'sell' recommendation would be premature without further negative catalysts or a complete exit by Starboard.

Keywords

Algonquin Power & Utilities, Starboard Value, Schedule 13D/A, Share Sale, Activist Investor, Common Shares, Stake Reduction, Utility Sector