TransAlta signs deal to acquire all of TransAlta Renewables worth $1.3 billion

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.

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.