Coal Investing News reports coal is at a new level.
But Canadian Hydro is playing hard to get. TransAlta chief executive Steve Snyder said his company, based in Calgary, proposed the same transaction back in December and was promptly rebuffed, forcing it to go directly to Canadian Hydro’s shareholders.
The proposed acquisition is set to boost the amount of green power in TransAlta’s portfolio to 1,900 megawatts and represent 22 per cent of its power mix, up from 15 per cent. TransAlta’s bid values Canadian Hydro’s stock at $654 million but also assumes $846 million in debt and other items. The all-cash offer of $4.55 a share is a 25-per-cent premium to last Friday’s closing price of Canadian Hydro common shares on the Toronto Stock Exchange.
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