CALGARY,
AB, May 26, 2023 /CNW/ - TransAlta Corporation
("TransAlta" or the "Company") (TSX: TA) (NYSE: TAC) announced
today 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 7.29% of
its public float of Common Shares, where the aggregate "public
float" (as defined by the TSX) as at May 17,
2023, was 192,048,191 Common Shares. 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 31, 2023 and ends on
May 30, 2024 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 150,222 Common Shares (being 25%
of the average daily trading volume on the TSX of 600,891 Common
Shares for the six months ended April 30,
2023) 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. As at
May 17, 2023, there were 263,330,038
Common Shares issued and outstanding.
TransAlta has repurchased and cancelled 8,549,500 Common Shares
on the open market through the facilities of the TSX and/or
alternative Canadian trading systems at an average price of
$11.86 per share under its prior NCIB
approved by the TSX on May 24, 2022
for the twelve-month period commencing May
31, 2022.
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 the Common Shares does not reflect their
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
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.
For more information about TransAlta, visit its website at
transalta.com.
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",
"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, 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 unless
otherwise indicated.
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SOURCE TransAlta Corporation