TransAlta Corp., after increasing its bid 15 percent, has reached an agreement to buy Canadian Hydro Developers Inc. for C$755 million (US$703 million).
“The revised offer from TransAlta provides our shareholders with a premium and liquidity,” said Dennis Erker, chairman of Canadian Hydro. “We are encouraging our shareholders to accept this offer.”
TransAlta raised its bid to C$5.25 a share after Canadian Hydro said it had received other offers that beat TransAlta’s original bid of C$4.55 a share. (HydroWorld 7/23/09) TransAlta extended its bid four times as Canadian Hydro sought a better deal.
“Together, our two companies will have unparalleled operational and development expertise, a robust growth portfolio, a strong balance sheet and will be well positioned as a North American leader in renewable energy,” said Steve Snyder, president and chief executive officer of TransAlta.
The deal won unanimous support from the boards of both companies. The new offer requires approval from two-thirds of Canadian Hydro’s shareholders.
Canadian Hydro operates 21 renewable energy plants totaling 694 MW of capacity. It has another 160 MW in or near construction, and 6,060 MW in development, including hydro, wind, and biomass.
