April 17 (Reuters) - American Electric Power AEP.O and Algonquin Power & Utilities Corp AQN.TO have decided to terminate a deal for American Electric's Kentucky operations, the companies said.
Algonquin had lowered its dividend in January and said it was targeting additional asset sales to reduce debt.
AEP said that proceeds from its contracted renewables sale, which is expected to generate $1.2 billion, would replace previously forecasted proceeds from the sale of Kentucky assets.
AEP had lowered the deal value by $200 million in September last year.
The companies decided to terminate the deal because the conditions prior to closing the sale could not be satisfied before April 26, the date after which either party had the right to end the agreement, AEP said.
The deal was first announced in October, 2021.
(Reporting by Sourasis Bose in Bengaluru; Editing by Shailesh Kuber)
((Sourasis.Bose@thomsonreuters.com;))
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