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  5. AQN: With the growing interest in ESG companies do you think AQN is a potential acquisition target? [Algonquin Power & Utilities Corp.]
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Q: With the growing interest in ESG companies do you think AQN is a potential acquisition target? Wondering if it small enough to get the takeover-kind of attention.

Asked by Edward on July 29, 2021
5i Research Answer:

With 'free' money due to low rates, and confidence slowly returning to the world, we would not rule anything out. AQN is $11B, so it would be a big bite, but certain not beyond possibility. It really depends on relative valuation. NEE, for example, trades at 30X earnings. AQN at 22X. This might not be enough of a difference to make a big deal, but some other companies could see synergies and benefits from a combination. It is not something we would hang our hat on, but is an added possibility