TransAlta extends offer for Canadian Hydro Developers, Inc. to October 14, 2009
CALGARY, Alberta (October 2, 2009) – TransAlta Corporation (TSX: TA; NYSE: TAC) announced today its wholly-owned subsidiary has extended its offer (the “Offer”) to acquire all of the issued and outstanding common shares of Canadian Hydro Developers, Inc. for $4.55 per share in cash to 6:00 p.m. (Calgary time) on October 14, 2009, unless withdrawn or extended.
“We continue to believe our offer provides Canadian Hydro shareholders with significant, immediate and certain value for the company’s existing assets as well as its future growth potential. To date, no other offer has materialized for Canadian Hydro,” said Steve Snyder, TransAlta’s Chief Executive Officer.
Aside from the extension the terms and conditions of the Offer for Canadian Hydro Developers described in the Offeror’s offer and take-over bid circular dated July 22, 2009, as amended by a notice of extension dated August 27, 2009, a notice of extension dated September 9, 2009, and a notice of extension dated September 21, 2009, remain unchanged. The fully-financed Offer represents a premium of approximately 30 per cent over the $3.50 volume weighted average trading price of the Canadian Hydro Developers common shares over the 10 trading days immediately prior to July 20, 2009 and approximately 25 per cent over the closing price on July 17, 2009, the last trading day before TransAlta disclosed its intention to make the Offer.
The shareholder rights plan of Canadian Hydro Developers is not applicable to the Offer as the plan was cease traded in respect of the Offer by the Alberta Securities Commission effective 12:00 noon (Calgary time) on September 21, 2009 with the consent of the Offeror and Canadian Hydro Developers.
The Offeror will mail a formal notice of extension to Canadian Hydro Developers shareholders today. The notice of extension will also be available on the SEDAR website at www.sedar.com and at transalta.com.
The transaction will be funded initially with a bank facility recently syndicated by the lead arranger, Royal Bank of Canada. This facility, along with TransAlta’s existing credit facilities and internally generated cash, will provide ample funding to take up and pay for all the outstanding Canadian Hydro Developers common shares. This initial funding will be replaced with permanent long-term funding in the debt capital markets, underpinned by raising an additional $250 – $300 million of equity. The transaction will not impact TransAlta’s dividend policy.
TransAlta strongly encourages shareholders of Canadian Hydro Developers to read the offer and take-over bid circular mailed to all shareholders of Canadian Hydro Developers on July 22, 2009, together with the notices of extension. The offer and take-over bid circular, as amended by the notices of extension, contain the full terms and conditions of the Offer as well as detailed instructions on how shareholders can tender their common shares to the Offer. Copies of the offer and take-over bid circular and related documents are available online at transalta.com.
Canadian Hydro Developers shareholders electing to tender their common shares to the Offer must complete the letter of transmittal or, if necessary, the notice of guaranteed delivery (both of which accompany the offer and take-over bid circular) and return the appropriate document in accordance with the terms and conditions more fully set out under ‘‘Manner of Acceptance’’ in Section 3 of the Offer. If common shares of Canadian Hydro Developers are held in the name of a nominee, such as a broker, investment dealer, bank or trust company, the shareowner should contact such nominee for instructions on how to deposit their common shares to the Offer.
For assistance in tendering common shares to the Offer, Canadian Hydro Developers shareholders are encouraged to contact Georgeson Shareholder Communications Canada Inc. at 1-866-783-6752 (North American Toll Free Number) or 1-212-806-6859 (Bank, Brokers and collect calls).
TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. We maintain a low to moderate risk profile by operating a highly contracted portfolio of assets in Canada, the United States, and Australia. Our focus is to efficiently operate our coal-fired, gas-fired, hydro and renewable facilities in order to provide our customers with a reliable, low-cost source of power. For nearly 100 years, we’ve been a responsible operator and a proud contributor to the communities where we work and live. TransAlta is recognized for its leadership on sustainability by the Dow Jones Sustainability North America Index, the FTSE4Good Index and the Jantzi Social Index.
This news release may contain statements that constitute “forward-looking information” or “forward-looking statements” (collectively “forward-looking information”) within the meaning of applicable securities legislation. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond TransAlta’s control including, without limitation, uncertainty related to the completion of the offer to acquire Canadian Hydro Developers and the effects of the transaction in the event it is completed on TransAlta, the impact of legislative or regulatory developments, competition, global capital markets activity, changes in prevailing interest rates, currency exchange rates, inflation levels and general economic conditions in geographic areas where TransAlta operates. Readers are cautioned that the foregoing list of risk factors is not exhaustive. Additional information on these and other factors that could affect TransAlta’s results are included in reports on file with the Canadian and United States securities regulatory authorities. TransAlta’s actual results, performance or achievements may differ materially from those expressed in, or implied by this forward-looking information and, accordingly, no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that TransAlta will derive therefrom. Forward-looking information is based on the estimates and opinions of TransAlta’s management at the time the information is released and TransAlta does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities. No offering of securities will be made absent registration under, or an exemption from the registration requirements of, applicable securities laws.
Note: All financial figures are in Canadian dollars unless noted otherwise
For more information:
Manager, External Relations
Phone: (403) 267-7330
Vice President, Communications and Investor Relations
Phone: (403) 267-7622
Fax: (403) 267-2590
Manager, Investor Relations
Phone: (403) 267-3607