CALGARY, April 9, 2019 /CNW/ - TransAlta Corporation
("TransAlta" or the "Company") (TSX:TA) (NYSE:TAC) today
announced that Mangrove Partners ("Mangrove") has made application
to the Alberta Securities Commission and Ontario Securities
Commission (together, the "Commissions"). In the application,
Mangrove is seeking a joint hearing of the Commissions in relation
to TransAlta's 2019 annual and special meeting of shareholders to
be held on April 26, 2019 and the
recently announced $750 million
investment and strategic partnership with an institutional partner
of Brookfield Renewable Partners ("Brookfield"). Mangrove's
application seeks various relief from the Commissions, including an
order cease trading the issuance of the exchangeable securities
under the investment agreement between the Company and Brookfield.
"Mangrove's application is inappropriate, unwarranted and
without merit," said Ambassador Gordon
Giffin, Chair of the Board of TransAlta. "It is an attempt
to circumvent the rights of our other shareholders through a misuse
of the Canadian securities regulatory process. We are moving
forward with our strategic partnership with Brookfield and the business of creating value
for the Company's shareholders."
About TransAlta Corporation
TransAlta owns, operates
and develops a diverse fleet of electrical power generation assets
in Canada, the United States and Australia with a focus on long-term
shareholder value. We provide municipalities, medium and large
industries, businesses and utility customers clean, affordable,
energy efficient, and reliable power. Today, we are one of
Canada's largest producers of wind
power and Alberta's largest
producer of hydro-electric power. For over 100 years, TransAlta has
been a responsible operator and a proud community-member where its
employees work and live. TransAlta aligns its corporate goals with
the UN Sustainable Development Goals and we have been recognized by
CDP (formerly Climate Disclosure Project) as an industry leader on
Climate Change Management. We are also proud to have achieved the
Silver level PAR (Progressive Aboriginal Relations) designation by
the Canadian Council for Aboriginal Business.
For more information about TransAlta, visit our web site at
transalta.com.
Forward-Looking Statements
This news release
contains forward-looking statements and forward-looking information
within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "may",
"will", "project", "should", "propose", "plans", "intends" and
similar expressions are intended to identify forward-looking
information or statements. More particularly, and without
limitation, this news release contains forward-looking statements
and information relating to: the 2019 shareholders' meeting; the
nature, timing and impact of existing or potential legal actions or
regulatory proceedings brought by Mangrove or others; the
investment by Brookfield and
expected benefits to the Company and its shareholders; the ability
of the investment to enhance the Company's financial position and
ability to execute the strategy; the Company's strategy, plans and
priorities; Brookfield's and
TransAlta's commitments with respect to the Brookfield investment; the Company's future
ownership levels in or control over the Alberta hydro assets; the appointment of the
Company's director nominees to the Board at the 2019 shareholders'
meeting; the Company's relationship with Brookfield or its affiliates and other
shareholders; the expected timing, costs and benefits of the
strategic investment by and partnership with Brookfield or its affiliates; and advancements
in the Company's strategy relating to clean energy and
growth. These statements are based on TransAlta's belief and
assumptions based on information available at the time the
assumptions were made, including assumptions pertaining to: the
election of the Company's proposed director nominees at the
Meeting; the Company's ability to successfully defend against any
existing or potential legal actions or regulatory proceedings; the
closing of the Brookfield
investment occurring and other risks to the Brookfield investment not materializing; no
significant changes to regulatory, securities, credit or market
environments; the anticipated Alberta capacity market framework in the
future; our ownership of or relationship with TransAlta Renewables
Inc. not materially changing; the Alberta hydro assets achieving their
anticipated value, cash flows and adjusted EBITDA; the anticipated
benefits and financial results generated on the coal-to-gas
conversion and the Company's other strategies; the Company's and
Mangrove's/Bluescape's strategies and plans; no significant changes
in applicable laws; and risks associated with the impact of the
investment on the Company's shareholders, debtholders and credit
ratings. The forward-looking statements are subject to a number of
risks and uncertainties that may cause actual performance, events
or results to differ materially from those contemplated by the
forward-looking statements. Some of the factors that could cause
such differences include: the failure of the Company's nominees to
be elected at the Meeting; the failure of the Brookfield investment to close; the outcomes
of existing or potential legal actions or regulatory proceedings
not being as anticipated, including those pertaining to the 2019
meeting and the Brookfield
investment; the appointment of any slate of directors proposed by
Mangrove/Bluescape and the subsequent termination of the
Brookfield investment by the
Company; changes in our relationship with Brookfield; changes in our relationship with
other shareholders; our Alberta
hydro assets not achieving their anticipated value, cash flows or
adjusted EBITDA once the applicable power purchase arrangement has
expired; the Brookfield investment
not resulting in the expected benefits for the Company and its
shareholders; the inability to complete share buy-backs within the
timeline or on the terms anticipated or at all; and other risks and
uncertainties contained in the Company's Management Proxy Circular
dated March 26, 2019 and its annual
information form and management's discussion and analysis for the
year ended December 31, 2018, filed
under the Company's profile with the Canadian securities regulators
on www.sedar.com and the Securities and Exchange Commission on
www.sec.gov. Readers are cautioned not to place undue reliance on
these forward-looking statements or forward-looking information,
which reflect TransAlta's expectations only as of the date of this
news release. In light of these risks, uncertainties and
assumptions, the forward-looking statements might occur to a
different extent or at a different time than we have described, or
might not occur at all. TransAlta disclaims any intention or
obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
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SOURCE TransAlta Corporation