Aug 9 (Reuters) -

Canada's Algonquin Power & Utilities Corp ( AQNB ) said on

Friday that it is selling its renewable energy business,

excluding hydropower operations, to a unit of LS Power for up to

$2.5 billion.

The company last August said it was considering a sale of

its renewable energy unit following a push by hedge fund

Starboard Value, its biggest shareholder, and other activist

firms for changes to reduce debt and boost earnings.

Algonquin is grappling with a massive debt burden following

a series of acquisitions in recent years. Its long-term debt

stood at about $8.3 billion, as of June 30.

JP Morgan acted as the financial advisor for the

transaction, which is expected close in the fourth quarter of

2024 or the first quarter of 2025, the company said.

Algonquin's shares have gained about 2% so far this year.