CALGARY, March 9, 2018 /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 4.86% of
issued and outstanding Common Shares as at March 2, 2018. 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 retains 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. TransAlta may also enter into an
automatic securities purchase plan in connection with its NCIB that
contains parameters regarding how its Common Shares may be
repurchased during times when it would ordinarily not be permitted
to purchase Common Shares due to regulatory restrictions or
self-imposed blackout periods.
The period during which TransAlta is authorized to make
purchases under the NCIB commences on March
14, 2018 and ends on March 13,
2019 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 102,039 Common Shares (being 25%
of the average daily trading volume on the TSX of 408,156 Common
Shares for the six months ended February 28,
2018) 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.
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.
As of March 2, 2018, there are
287,903,467 Common Shares outstanding, of which 287,297,124 Common
Shares are considered to be in the public float as they are not
held by directors, officers or principal shareholders of the
Company. Accordingly, the maximum number of Common Shares
that may be repurchased under the NCIB represents approximately
4.86% of the number of Common Shares currently outstanding, and
approximately 4.87% of the public float.
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. We provide municipalities,
medium and large industries, businesses and utility customers
clean, affordable, energy efficient, and reliable power. Today, we
are one of Canada's largest
producers of wind power and Alberta's largest producer of hydro-electric
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 we have been recognized by
CDP (formerly Climate Disclosure Project) as an industry leader on
Climate Change Management. We are also 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 our 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 and purchases
thereunder, the entering into of an automatic securities purchase
plan; and the effects of repurchases of Common Shares, 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: 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.
SOURCE TransAlta Corporation