The offer period for the unsolicited takeover has been extended to 11 September. TransAlta continues to offer Can$4.55 (US$4.20) in cash per share, and Canadian Hydro Developers’ Board maintains their view it is ‘inadequate’.
The Alberta Securities Commission unanimously dismissed the application made by TransAlta on the Shareholders Rights Plan, said Canadian Hydro Developers – adding that the decision was ‘the best possible outcome’. What helped sway the Commission was the evidence presented on potential rival bids.
However, TransAlta said the decision could be reviewed depending on developments in the coming weeks.
In a statement, Canadian Hydro Developers said that a number of parties have expressed interest in the business and confidentiality agreements have been signed for information gathering. One party is a leading international financial institution based in New York, it added.
Canadian Hydro Developers has 694MW of net capacity in operation with another 185MW nearing completion . It also has 1624MW of capacity in development, including the 100MW Dunvegan run-of-river project.
Earlier this month TransAlta was given early-stage clearance from the Canadian Competition Bureau to pursue its takeover bid.
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