In a statement from the companies, it was announced that the amended offer, which has a total value of approximately C$1.6B, has the unanimous support of the Boards of Directors of both companies.
“We believe this transaction delivers certain and fair value to Canadian Hydro Shareholders while providing TransAlta shareholders with both near and long term value,’ said TransAlta President and CEO Steve Snyder, adding that the acquisition will accelerate TransAlta’s renewable portfolio.
On a combined basis, TransAlta and Canadian Hydro will have net generation capacity of 8657MW in operation. The renewables portfolio will include 1900MW in operation, or 22% of the combined portfolio. In addition, there is 543MW under construction and nearly 500MW in advanced-stage development.
Canadian Hydro Board Chair Dennis Erker said, “Over the past two months, the Canadian Hydro Board and its advisors have conducted a thorough process to review and consider the full range of options for enhancing shareholder value, including alternative proposals. We believe the revised offer from TransAlta provides our shareholders with a premium and liquidity, and we are encouraging our shareholders to accept this offer.”
The Amended Offer is subject to certain conditions, including the acquisition by TransAlta of at least 66 2/3 per cent of the outstanding Canadian Hydro common shares.
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