Altus Power (NYSE: AMPS) has announced a formal review of strategic alternatives to unlock shareholder value and optimize access to capital. This announcement comes as the company reaffirms its guidance for fiscal year 2024.
As part of this strategic evaluation, Altus Power has retained Moelis & Company LLC and Latham & Watkins to assist with the review, with the expectation that the process will be completed by the first half of 2025.
Altus Power's CEO, Gregg Felton, stated, "Our goal is to ensure that Altus Power is structured for long-term success in a growth industry with strong secular tailwinds and large market opportunity." He also noted, "The ongoing disconnect between the share price and our view of intrinsic value gives the board and management confidence that exploring alternative ownership structures is a prudent course to maximize value for our investors, partners, customers and employees."
Christine Detrick, the board chair of Altus Power, added, "The ongoing disconnect between the share price and our view of intrinsic value gives the board and management confidence that exploring alternative ownership structures is a prudent course to maximize value for our investors, partners, customers and employees."
Altus Power has emphasized that it does not intend to comment further until the board has approved a specific transaction, the process has otherwise concluded, or the company has otherwise determined that further disclosure is appropriate or necessary. The company also highlighted that there is no assurance that the review will result in the completion of any particular transaction or any specific outcome. Following these announcements, the company's shares moved 16.7%, and are now trading at a price of $3.52. For more information, read the company's full 8-K submission here.
