TransAlta shareholder intends to offer dissident board candidates

Power giant TransAlta Corp. said this week it’s received notice investment firm Mangrove Partners intends to nominate five candidates for election to the company’s board.

Election of directors will take place at TransAlta’s upcoming annual and special shareholders’ meeting on April 16, Kallanish Energy reports.

Mangrove owns 7.1% of Calgary-based TransAlta, while its associated investor, Cove Key Bluescape Holdings LP, holds another 3% of TransAlta’s outstanding shares.

TransAlta said it will review Mangrove’s notice, consider the suitability of its nominees and communicate more fully with its shareholder “in due course.”

In conjunction with the Mangrove announcement, TransAlta announced a $750 million investment by Brookfield Renewable Partners and its institutional partners in the company.

TransAlta said Brookfield’s investment “crystalizes the value of the company’s (Alberta) hydro assets, enhances its financial position to execute its strategy, and accelerates the opportunity to return capital to shareholders.”

The investment ensures TransAlta will transition to 100% clean energy by 2025, the company said. In addition, Brookfield has committed to purchase TransAlta common shares on the open market to increase its share ownership to 9%, from the current 4.9% ownership.

TransAlta also announced it and Brookfield will form a joint operating committee, to be in force for six years, to focus on optimizing the operations and maximizing the value of TransAlta’s hydro assets.

This post appeared first on Kallanish Energy News.