CALGARY, May 26, 2020 /PRNewswire/ - TransAlta
Corporation ("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC)
today announced that the Toronto Stock Exchange ("TSX") has
accepted the notice filed by the Company to implement a normal
course issuer bid ("NCIB") for a portion of its common shares
("Common Shares").
Pursuant to the NCIB, TransAlta may repurchase up to a maximum
of 14,000,000 Common Shares, representing approximately 7.02% of
its public float of Common Shares as at May
25, 2020. Purchases under the NCIB may be made through open
market transactions on the TSX and any alternative Canadian trading
platforms on which the Common Shares are traded, based on the
prevailing market price. Any Common Shares purchased under the
NCIB will be cancelled.
Transactions under the NCIB will depend on future market
conditions. TransAlta will initially retain discretion whether to
make purchases under the NCIB, and to determine the timing, amount
and acceptable price of any such purchases, subject at all times to
applicable TSX and other regulatory requirements. The period during
which TransAlta is authorized to make purchases under the NCIB
commences on May 29, 2020 and ends on
May 28, 2021 or such earlier date on
which the maximum number of Common Shares are purchased under the
NCIB or the NCIB is terminated at the Company's
election.
Under TSX rules, not more than 228,157 Common Shares (being 25%
of the average daily trading volume on the TSX of
912,630 Common Shares for the six months ended April 30, 2020) can be purchased on the TSX on
any single trading day under the NCIB, with the exception that one
block purchase in excess of the daily maximum is permitted per
calendar week. There are currently 275,778,741 Common Shares of the
Company issued and outstanding.
TransAlta has repurchased and cancelled 9,013,300 million Common
Shares on the open market through the facilities of the TSX and/or
alternative Canadian trading platforms at a cost of $76.53 million, or an average of
$8.49 per share under its prior
NCIB approved by the TSX on May 27,
2019 for the twelve-month period commencing May 29, 2019.
The NCIB provides the Company with a capital allocation
alternative with a view to long-term shareholder value. TransAlta's
Board of Directors and Management believe that, from time to time,
the market price of TransAlta's Common Shares does not reflect the
underlying value and purchases of Common Shares for cancellation
under the NCIB may provide an opportunity to enhance shareholder
value.
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. TransAlta provides
municipalities, medium and large industries, businesses and utility
customers with clean, affordable, energy efficient and reliable
power. Today, TransAlta is one of Canada's largest producers of wind power and
Alberta's largest producer of
hydroelectric 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 has been recognized by CDP
(formerly Climate Disclosure Project) as an industry leader on
Climate Change Management. TransAlta is 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 its 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
TransAlta's intentions with respect to the NCIB, the effects of
repurchases of Common Shares and purchases thereunder, including
any enhancement to shareholder value. These statements are based on
TransAlta's belief and assumptions based on information available
at the time the assumptions were made. These statements are subject
to a number of risks and uncertainties that may cause actual
results to differ materially from those contemplated by the
forward-looking statements. Some of the factors that could cause
such differences include: the entering into of an automatic
securities purchase plan; legislative or regulatory developments;
any significant changes to Common Share price or trading volume;
continued availability of capital and financing; changes to general
economic, market or business conditions; business opportunities
that become available to, or are pursued by TransAlta; and
other risk factors contained in the Company's annual information
form and management's discussion and analysis. 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.
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.
Note: All financial figures are in Canadian dollars.
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SOURCE TransAlta Corporation