TransAlta Corporation Enters into Automatic Share Purchase Plan

Rhea-AI Summary

TransAlta (TSX: TA, NYSE: TAC) has entered into an automatic share purchase plan (ASPP) with its broker for repurchasing its common shares under the previously announced normal course issuer bid (NCIB). The NCIB allows for the purchase of up to 14 million shares from May 31, 2024, to May 30, 2025. So far, 1.7 million shares have been bought at an average price of $9.77, totaling $16.6 million since the NCIB's start. The ASPP, effective July 1, 2024, will enable share purchases even during periods when TransAlta cannot buy shares due to regulatory or blackout restrictions. All purchased shares will be canceled to enhance shareholder returns. The ASPP will terminate either upon reaching its purchase limit, by August 6, 2024, or if terminated by the company.

Positive

• Entered ASPP to facilitate share repurchases under NCIB.
• NCIB approval to purchase up to 14 million shares by May 2025.
• Purchased 1.7 million shares at an average price of $9.77 since NCIB's start.
• Total share repurchase value of $16.6 million since NCIB began.
• ASPP allows share purchases during regulatory or blackout periods.
• Shares repurchased will be canceled, enhancing shareholder returns.

Negative

• Already purchased 9.137 million shares in 2024 at $9.33, totaling $85.3 million.
• ASPP may terminate as early as August 6, 2024, limiting the repurchase period.

CALGARY, Alberta, June 24, 2024 (GLOBE NEWSWIRE) -- TransAlta Corporation (“TransAlta” or the “Company”) (TSX: TA) (NYSE: TAC) announced today that it has entered into an automatic share purchase plan (“ASPP”) with its broker in order to facilitate repurchases of TransAlta’s common shares (“Common Shares”) under the Company’s previously announced normal course issuer bid (“NCIB”).

The Company previously announced that it had received approval from the Toronto Stock Exchange (“TSX”) to purchase up to 14,000,000 of its Common Shares during the 12-month period that commenced May 31, 2024 and terminates May 30, 2025. Purchases under the NCIB may be made through open market transactions on the TSX and any alternative Canadian trading systems on which the Common Shares are traded, based on the prevailing market price. Since January 1, 2024, the Company has purchased 9,137,200 Common Shares at a weighted average price per Common Share of $9.33 for an aggregate value of approximately $85.3 million. Since the beginning of the current NCIB on May 31, 2024, the Company has purchased 1,700,000 at a weighted average price per Common Share of $9.77 for an aggregate value of approximately $16.6 million.

The Company believes that the prevailing price for the Common Shares may not, from time to time, reflect the underlying value of the Common Shares and that the purchase of Common Shares pursuant to the NCIB may be an attractive and appropriate use of available funds relative to other alternatives. The ASPP will facilitate purchases under the NCIB as it will allow for purchases of Common Shares to be made at times when the Company would ordinarily not be permitted to make purchases, whether due to regulatory restriction or customary self-imposed blackout periods. TransAlta is committed to enhancing shareholder returns through appropriate capital allocation such as a share buyback and its quarterly dividend, which are underpinned by the Company's strong free cash flow position.

Under the ASPP, the Company’s broker may purchase Common Shares from the effective date of the ASPP until the end of the NCIB. The ASPP will facilitate purchases of Common Shares under the NCIB by authorizing the Company’s broker to make purchases at its sole discretion based on parameters set by the Company in accordance with TSX rules, applicable law and the terms of the ASPP. Outside of periods that the Company is restricted from purchasing Common Shares pursuant to insider trading rules or its own internal trading blackout policies, Common Shares may also be purchased based on management’s discretion, in compliance with TSX rules and applicable law.

All purchases of Common Shares made under the ASPP will be included in determining the number of Common Shares purchased under the NCIB. Any Common Shares purchased by the Company pursuant to the NCIB will be cancelled. The Company is not currently in possession of any material undisclosed information in relation to the Company.  The ASPP has been pre-cleared by the TSX and will be effective on July 1, 2024.   

The ASPP will terminate on the earliest of the date on which: (a) the maximum purchase limits under the ASPP are reached; (b) August 6, 2024; or (c) the Company terminates the ASPP in accordance with its terms.

About TransAlta Corporation:

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of hydro-electric power. For over 112 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live. TransAlta aligns its corporate goals with the UN Sustainable Development Goals and the Future-Fit Business Benchmark, which also defines sustainable goals for businesses. Our reporting on climate change management has been guided by the International Financial Reporting Standards (IFRS) S2 Climate-related Disclosures Standard and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. TransAlta has achieved a 66 per cent reduction in GHG emissions or 21.3 million tonnes CO2e since 2015 and received an upgraded MSCI ESG rating of AA.

For more information about TransAlta, visit its website at transalta.com.

Note: All financial figures are in Canadian dollars unless otherwise indicated.

For more information:

Investor Inquiries:	Media Inquiries:
Phone: 1-800-387-3598 in Canada and U.S.	Phone: 1-855-255-9184
Email: investor_relations@transalta.com	Email: ta_media_relations@transalta.com

FAQ

What is TransAlta 's ASPP?

TransAlta 's Automatic Share Purchase Plan (ASPP) is an arrangement with its broker to facilitate the repurchase of its common shares under the company's normal course issuer bid (NCIB).

How many shares is TransAlta authorized to repurchase under the NCIB?

TransAlta is authorized to repurchase up to 14 million common shares under its normal course issuer bid (NCIB) from May 31, 2024, to May 30, 2025.

When will TransAlta's ASPP become effective?

TransAlta's ASPP will become effective on July 1, 2024.

What is the average purchase price of TransAlta shares under the current NCIB?

The average purchase price of TransAlta shares under the current NCIB is $9.77 per share.

How many shares has TransAlta repurchased since January 2024?

Since January 2024, TransAlta has repurchased 9.137 million common shares at an average price of $9.33 per share.

What is the total value of shares TransAlta has repurchased under the NCIB?

TransAlta has repurchased shares totaling approximately $16.6 million since the NCIB began.

When will TransAlta's ASPP terminate?

TransAlta's ASPP will terminate on the earliest of the date the maximum purchase limits are reached, August 6, 2024, or if the company terminates the plan.