AltaGas Ltd. is slashing its dividend by 56 per cent and selling its remaining majority stake in a B.C. hydroelectric power operation for $1.39 billion.
The Calgary-based company says it will now pay a monthly dividend of eight cents per share, down from 18.25 cents per share.
The cut to its payments to shareholders came as AltaGas announced plans to sell its remaining 55 per cent in the Northwest Hydro Facilities to a joint venture that is controlled by Axium Infrastructure Inc. and Manulife Financial Corp.
AltaGas sold a 35 per cent stake in the operation to the same joint venture earlier this year.
The company also says it has targeted an additional $1.5 billion to $2 billion in asset sales next year.
AltaGas says the changes are part of a plan to regain financial strength and flexibility to fund future growth opportunities with a focus on its midstream and U.S. utilities business.