CALGARY,
AB, March 27, 2023 /CNW/ - TransAlta
Corporation. ("TransAlta" or the "Company") (TSX: TA) (NYSE:
TAC) announced today that it has entered into an automatic share
purchase plan ("ASPP") with a broker in order to facilitate
repurchases of TransAlta's common shares (the "Common Shares")
under its previously announced normal course issuer bid
("NCIB").
The Company previously announced that it had received approval
from the Toronto Stock Exchange ("TSX") to purchase up to
14,000,000 of its Common Shares, representing approximately 5.2% of
the Company's currently issued and outstanding Common Shares,
during the 12-month period that commenced May 31, 2022 and terminates May 30, 2023. 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. Since the
beginning of the NCIB on May 31,
2022, the Corporation has purchased 5,518,000 Common Shares
at a weighted average price per Common Share of $11.85 for an aggregate value of $65,401,768. Purchases under the current plan
include 2,575,700 Common Shares purchased in 2023 at a weighted
average price per Common Share of $11.18 for an aggregate value of $28,802,633.
The Company believes that the prevailing price for the Common
Shares may not, from time to time, reflect the underlying
value of the Common Shares and that the purchase of Common Shares
pursuant to the NCIB may be an attractive and appropriate use of
available funds relative to other alternatives. The ASPP will
facilitate purchases under the NCIB as it will allow for purchases
of Common Shares to be made at times when the Company would
ordinarily not be permitted to make purchases, whether due to
regulatory restriction or customary self-imposed blackout periods.
TransAlta is committed to enhancing shareholder returns through
appropriate capital allocation such as a share buyback and its
quarterly dividend, which are underpinned by the Company's strong
free cash flow position.
Under the ASPP, the Company's broker may purchase Common Shares
from the effective date of the ASPP until the end of the NCIB. The
ASPP will facilitate purchases of Common Shares under the NCIB by
authorizing the Company's broker to make purchases at its sole
discretion based on parameters set by the Company in accordance
with TSX rules, applicable law and the terms of the ASPP. Outside
of periods that the Company is restricted from purchasing Common
Shares pursuant to insider trading rules or its own internal
trading blackout policies, Common Shares may also be purchased
based on management's discretion, in compliance with TSX rules and
applicable law.
All purchases of Common Shares made under the ASPP will be
included in determining the number of Common Shares purchased under
the NCIB. Any Common Shares purchased by the Company pursuant to
the NCIB will be cancelled. The Company is not currently restricted
from purchasing Common Shares pursuant to any insider trading rules
or its own internal trading blackout policies. The ASPP has been
pre-cleared by the TSX and will be effective on or before April, 1,
2023.
The ASPP will terminate on the earliest of the date on which:
(a) the maximum purchase limits under the ASPP are reached; (ii)
the NCIB expires; or (iii) the Company terminates the ASPP in
accordance with its terms.
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
hydro-electric power. For over 111 years, TransAlta has been a
responsible operator and a proud member of the communities where we
operate and where our employees work and live. TransAlta aligns its
corporate goals with the UN Sustainable Development Goals and its
climate change strategy with CDP (formerly Climate Disclosure
Project) and the Task Force on Climate-related Financial
Disclosures (TCFD) recommendations. TransAlta has achieved a 68 per
cent reduction in GHG emissions or 22 million tonnes since 2015 and
has received scores of A- from CDP and A from MSCI.
Cautionary Statement Regarding
Forward-looking Information:
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 "may" or "will", 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 and ASPP and the purchase of Common Shares thereunder,
including any enhancement to shareholder returns. These statements
are based on TransAlta's beliefs 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: 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 unless
otherwise indicated.
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SOURCE TransAlta Corporation