“Brookfield’s investment is a strong endorsement of TransAlta’s strategy and future value,” said Dawn Farrell, president and chief executive officer of TransAlta, in a statement. “By crystallizing the value of our hydro assets, we can accelerate the return of capital to shareholders and invest in coal to gas conversions and strategic gas and renewable developments, while still meeting our goal to reduce senior indebtedness to $1.2 billion by the end of 2020. With Brookfield as a cornerstone shareholder, we are well positioned to invest in our business and increase value for shareholders.”
“We are pleased to partner with TransAlta to accelerate its transition to clean energy and support value creation for all shareholders,” said Sachin Shah, CEO of Brookfield Renewable Partners. “We look forward to contributing our capabilities, particularly our long-term expertise in the hydro sector, to enable the company’s growth over the long-term.”
In a news release, TransAlta said will direct $350 million to advance the company’s coal-to-gas transition strategy, up to $250 million to buy back shares over three years, and the remainder to advance the development of existing and new growth projects and for general corporate purposes.
“This funding, combined with internally generated cash flow, allows TransAlta to advance its coal-to-gas strategy, continue to grow, return some capital to shareholders, and meet its target of repaying the $400 million medium term notes due in November 2020,” it said.
– Mario Toneguzzi for Calgary’s Business