TransAlta Takes Over TransAlta Renewables For $1.05B

TransAlta Corporation TAC has inked a pact to buy shares of TransAlta Renewables Inc, which it doesn't own.

The total consideration paid to RNW Shareholders is valued at C$1.38 billion on July 10, 2023, of which C$800 million will be paid in cash. 

The consideration payable to TransAlta Renewables Shareholders represents an 18.3% premium based on its closing price on the Toronto Stock Exchange as of July 10, 2023.

The combined company will have an increased public float and trading liquidity and have access to more efficient capital, along with corporate synergies.

The combined company will directly own one of Canada's largest independent power producers, with interests in a diversified portfolio of wind, hydro, solar, storage, and natural gas generation assets.

The deal is expected to be completed early in the fourth quarter of 2023.

The combined company will operate as TransAlta and remain listed on the TSX and the NYSE under the symbols "TA" and "TAC", respectively.

Price Action: TAC shares closed higher by 1.63% at $9.36 on Tuesday.