20 July 2009– TransAlta Corp. said it intends to make a C$1.5 billion ($1.35 billion) all-cash offer to acquire Calgary-based Canadian Hydro Developers.
Canadian Hydro Developers operates 694 MW of wind, hydro and biomass facilities in several Canadian provinces. It also has 252 MW of advanced-stage development projects in western and eastern Canada.
TransAlta and Canadian Hydro Developers would have net generation capacity of 8,657 MW in operation, 1,900 MW in renewable projects and an additional 1,172 MW either under construction or in advanced-stage development.
Royal Bank of Canada will initially underwrite the deal to pay for Canadian Hydro Developers’ outstanding shares. It will be replaced with C$250-$300 million ($225.76-$270.91 million) of long-term equity.
TransAlta expects to open the offer for acceptance on July 22 and keep it open until August 27 unless it is extended or withdrawn.