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TransAlta Renewables to invest C$540 mln in TransAlta Corp projects

Published 2015-11-23, 05:19 p/m
TransAlta Renewables to invest C$540 mln in TransAlta Corp projects
TA
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RNW
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CALGARY, Alberta, Nov 23 (Reuters) - Canadian renewable
energy company TransAlta Renewables RNW.TO said on Monday it
would invest C$540 million ($404 million) in three projects in
Ontario and Quebec belonging to its majority-owner TransAlta
Corp TA.TO .
The assets are TransAlta's Sarnia cogeneration plant and
Ragged Chute hydro facility in Ontario, and the Le Nordais wind
farm in Quebec. Together, they generate about 611 megawatts of
power.
TransAlta Renewables' investment will involve acquiring
securities that track the profits of the three assets.
It has entered into a C$150 million bought deal offering to
finance the cash portion of the investment and will sell C$200
million of TransAlta Renewables common shares to the Alberta
Investment Management Corp.
It is the second time TransAlta Renewables has acquired
assets from TransAlta Corp this year.
TransAlta Corp spun off its wind and hydroelectric power
plants to form TransAlta Renewables in 2013 but still holds a
majority stake in the company.
Both companies received a boost over the weekend from the
Alberta government's release of its long-term plan to tackle
climate change and reduce the province's greenhouse gas
emissions.
TransAlta Renewables benefited as a renewable energy
company, while TransAlta Corp said it was critically important
that the government had committed to an orderly transition to
phase out coal by 2030.
TransAlta Corp shares were last up 9.4 percent on the
Toronto Stock Exchange at C$5.96, while TransAlta Renewables
gained in early trade before dipping 0.2 percent to C$10.31.
($1 = 1.3357 Canadian dollars)

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