TransAlta To Buy TransAlta Renewables For $1.384 Bln

(RTTNews) - TransAlta Corp. (TAC), a Canadian electricity power generator, on Tuesday announced a deal with TransAlta Renewables Inc. (RNW.TO) to acquire all shares and form a combined large-scale clean electricity company.

The RNW shareholders are entitled to receive 46,441,779 TransAlta shares and a maximum aggregate amount of cash of $800 million.

The total consideration paid to RNW is valued at $1.384 billion on July 10, of which $800 million will be paid in cash.

The consideration payable to RNW is equal to $13 per share, which represents an 18.3 percent premium based on its closing price of $10.99 per share on July 10.

The new combined company will operate as TransAlta and remain listed on the TSX and the New York Stock Exchange, under the symbols 'TA' and 'TAC', respectively. The arrangement is expected to be closed early in the fourth quarter.

John Kousinioris, CEO of TransAlta, said: "…The combined company's greater scale and enhanced positioning will drive benefits and unlock value for all of our shareholders. The combination of the two companies will be underpinned by a single strategy that provides greater clarity to investors and will support future growth."