TransAlta Renewables’ shareholders can opt for 1.0337 common shares of TransAlta or $13.00 in cash for each share outstanding, representing a 18.3 per cent premium based on the closing price of Renewables shares on the Toronto Stock Exchange on Monday. TransAlta is restricting the number of common shares it will issue to 46 million, while the maximum cash available is $800-million.
At the time of the IPO, each common share of Renewables was valued at $10.00, raising $200-million. The spin-off was meant to cover the costs of the transition out of coal-fired power plants. “Now is the right time to bring these two companies together to create a single clean electricity leader,” TransAlta chief executive John Kousinioris said in a news release.
In the 12 months ended March 31, TransAlta reported net income of $158-million on revenue of $3.33-billion, according to S&P Global Market Intelligence.