CALGARY — TransAlta Corp. says it has signed an agreement to acquire the minority stake in TransAlta Renewables Inc. that it does not already own in a deal it says will help simplify its structure and improve its strategic position.
The deal would reverse its decision to spin off TransAlta Renewables in 2013.
The power utility says the total consideration to be paid to TransAlta Renewables shareholders for the 40 per cent stake it does not already own is valued at $1.38 billion.
Under the proposal, TransAlta Renewable shareholders will receive 1.0337 common shares of TransAlta or $13 in cash for each share they hold. The number of shares available under the offer is capped at 46.4 million, while the maximum cash available is limited to $800 million.
TransAlta Renewable shares closed at $10.99 on the Toronto Stock Exchange on Monday before the deal was announced.
TransAlta chief executive John Kousinioris says the combined company's greater scale and enhanced positioning will drive benefits and unlock value for shareholders.
This report by The Canadian Press was first published July 11, 2023.
Companies in this story: (TSX:TA, TSX:RNW)
The Canadian Press
