CALGARY,
AB, Dec. 19, 2023 /PRNewswire/ - TransAlta
Corporation ("TransAlta" or the "Company") (TSX: TA) (NYSE:
TAC) announced today that it has entered into an automatic share
purchase plan ("ASPP") with its broker in order to facilitate
repurchases of TransAlta's common shares ("Common Shares") under
the Company's previously announced normal course issuer bid
("NCIB").
The Company previously announced that it had received approval
from the Toronto Stock Exchange ("TSX") to purchase up to
14,000,000 of its Common Shares during the 12-month period that
commenced May 31, 2023 and terminates
May 30, 2024. Purchases under the
NCIB may be made through open market transactions on the TSX and
any alternative Canadian trading systems on which the Common Shares
are traded, based on the prevailing market price. Since
January 1, 2023, the Company has
purchased 6,989,000 Common Shares purchased at a weighted average
price per Common Share of $11.53 for
an aggregate value of approximately $81.0
million. Since the beginning of the current NCIB on
May 31, 2023, the Company has
purchased 871,100 at a weighted average price per Common Share of
$10.92 for an aggregate value of
approximately $9.6 million.
The Company believes that the prevailing price for the Common
Shares may not, from time to time, reflect the underlying value of
the Common Shares and that the purchase of Common Shares pursuant
to the NCIB may be an attractive and appropriate use of available
funds relative to other alternatives. The ASPP will
facilitate purchases under the NCIB as it will allow for purchases
of Common Shares to be made at times when the Company would
ordinarily not be permitted to make purchases, whether due to
regulatory restriction or customary self-imposed blackout periods.
TransAlta is committed to enhancing shareholder returns through
appropriate capital allocation such as a share buyback and its
quarterly dividend, which are underpinned by the Company's strong
free cash flow position.
Under the ASPP, the Company's broker may purchase Common Shares
from the effective date of the ASPP until the end of the
NCIB. The ASPP will facilitate purchases of Common Shares
under the NCIB by authorizing the Company's broker to make
purchases at its sole discretion based on parameters set by the
Company in accordance with TSX rules, applicable law and the terms
of the ASPP. Outside of periods that the Company is
restricted from purchasing Common Shares pursuant to insider
trading rules or its own internal trading blackout policies, Common
Shares may also be purchased based on management's discretion, in
compliance with TSX rules and applicable law.
All purchases of Common Shares made under the ASPP will be
included in determining the number of Common Shares purchased under
the NCIB. Any Common Shares purchased by the Company pursuant to
the NCIB will be cancelled. The Company is not currently in
possession of any material undisclosed information in relation to
the Company. The ASPP has been pre-cleared by the TSX
and will be effective on January 1,
2024.
The ASPP will terminate on the earliest of the date on which:
(a) the maximum purchase limits under the ASPP are reached; (b)
February 24, 2024; or (c) the Company
terminates the ASPP in accordance with its
terms.
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 112 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 AA from MSCI.
Note: All financial figures are in Canadian dollars unless
otherwise indicated.
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SOURCE TransAlta Corporation