In a statement, TransAlta said it had taken up approximately 125 million common shares of Canadian Hydro and had extended the offer for remaining shares to allow additional time for the company’s shareholders to tender to the Offer.
In July this year, TransAlta had put in an unsolicited all-cash takeover bid for Candian Hydro, offering C$4.55 (US$4.20) per share. This was immediately rejected by the power generator’s board as being ‘inadequate and contrary to the interests' of the company and shareholders. Earlier this month however, it was announced that Canadian Hydro had accepted an increased offer from TransAlta of C$5.25 per share, amounting to a total value of approximately C$1.6B.
“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 announcing the amended offer, adding that the acquisition will accelerate TransAlta’s renewable portfolio.
If the full takeover deal goes ahead, 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.
