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TransAlta to acquire Heartland Generation from Energy Capital for $542M
The Fly

TransAlta to acquire Heartland Generation from Energy Capital for $542M

TransAlta (TAC) announced that it has entered into an amending agreement to the share purchase agreement with an affiliate of Energy Capital Partners, ECP, the parent of Heartland Generation Ltd. and Alberta Power, relating to the previously announced acquisition of Heartland and its business operations by TransAlta. In order to meet the requirements of the federal Competition Bureau, TransAlta has also entered into a consent agreement with the Commissioner of Competition pursuant to which TransAlta has agreed to divest Heartland’s Poplar Hill and Rainbow Lake assets following closing of the Transaction. Closing of the Transaction is expected to occur on or before December 4, 2024. In consideration of the Divestitures, TransAlta and ECP have agreed to a purchase price reduction of $80 million for the Transaction. ECP will be entitled to receive the proceeds from the sale of Poplar Hill and Rainbow Lake, net of certain adjustments following completion of the Divestitures. The net cash payment for the Transaction, before working capital adjustments, is estimated at $230 million, and will be funded through a combination of cash on hand and draws on its credit facilities.

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