TransAlta to buy TransAlta Renewables in $1 billion deal on clean energy push
(Reuters) -Canadian electric utility TransAlta Corp will buy the rest of the stake it does not own in TransAlta Renewables Inc in a cash-and-stock deal valued at C$1.38 billion ($1.04 billion).
The offer comes as utilities streamline their operations to shift away from fossil fuels toward cleaner energy sources, including solar and wind, to meet climate change goals.
TransAlta said on Tuesday it had offered C$13 per share for the about 60.1% stake in TransAlta Renewables. The offer represents an 18.3% premium to the stock's last close.
U.S.-listed shares of TransAlta were down 1.4% at $9.08 in premarket trading.
The deal is expected to be completed early in the fourth quarter and the combined company will operate as TransAlta and remain listed on the Toronto Stock Exchange and the New York Stock Exchange.
Of the total deal value, C$800 million will be paid in cash, TransaAlta said.
The combined company will have unified and direct ownership interests in a diversified portfolio of wind, hydro, solar, storage and natural gas generation assets.
($1 = 1.3276 Canadian dollars)
(Reporting by Arunima Kumar in Bengaluru)
