BRIEF-TransAlta Renewables agrees to invest $540 mln in three Canadian projects owned by TransAlta Corporation

Nov 23 (Reuters) - TransAlta Renewables Inc:
* Transalta renewables agrees to invest $540 million in three Canadian projects
owned by TransAlta Corporation
* Transalta renewables - says portfolio consists of approximately 611 mw of
highly contracted power generation assets located in Ontario and Quebec
* Transalta renewables-TransAlta Renewables to issue $175 million in shares to
TransAlta and $215 million in convertible unsecured subordinated debentures
* Transalta renewables -TransAlta Renewables to invest in transalta's Sarnia
cogeneration plant, le nordais wind farm and ragged chute hydro facility
* Transalta renewables -TransAlta Renewables intends to finance the transaction
through a combination of cash and securities to be issued to TransAlta
* Transalta renewables-cash consideration payable to TransAlta pursuant to
investment agreement will be raised through the offering and by cash on hand
* Transalta renewables-special committee consisting of independent directors of
TransAlta Renewables reviewed deal
* Transalta renewables - to finance cash portion of deal has entered into $150
million bought deal offering co-led by cibc capital markets,td securities inc
* Transalta renewables -after shareholder approval,holder of subscription
receipts to get 1 common share in capital of co for each subscription receipt
* Transalta renewables-cos' investment to consist of acquisition of securities
which will track net distributable profits of the portfolio
* Transalta renewables -TransAlta Corp entered into deal with Alberta
investment management corp for sale of $200 million of TransAlta Renewables
shares
* Transalta renewables - upon deal completion, TransAlta will own approximately
65% of the outstanding shares of TransAlta Renewables
* Transalta renewables-cash consideration payable to TransAlta pursuant to
investment agreement to be raised from offering,supplemented by cash on hand
* Transalta renewables -enhanced cash flow per share from dela supports
dividend increase of $0.04 per share to $0.88 per share annually upon
completion of deal

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