8/31/2023 Company News

Ecofin intends to vote against the proposed acquisition of TransAlta Renewables by TransAlta Corporation

London – 31 August 2023 – Ecofin, one of the top 3 minority shareholders of TransAlta Renewables, hereby informs its investors and the market of its intention to vote against the proposed acquisition of TransAlta Renewables by TransAlta Corporation at the current offer price of CAD13.00 per share. We believe that the offer doesn’t reflect the intrinsic value of TransAlta Renewables (“the Company”) which we believe is above CAD16.00 based on cash flows and multiples valuation.

The Management Information Circular confirms the fears expressed in our letter to the board of the Company on August 7th. We are concerned about the following: the lack of alternatives to a TransAlta Corporation offer leaving TransAlta Renewables at the mercy of the TransAlta Corporation offer, as well as the Company’s Special Committee discussing offers above CAD18.00 per share prior to the December disclosure, yet agreeing to CAD13.00 now. Those discussions indicate a lack of vision on the intrinsic value of the Company and the opportunistic timing of the current offer.

As TransAlta Corporation has not yet entertained the idea of revising its offer, we hereby share with the investment community the letter we addressed to the boards and management teams of the two companies earlier this month. The letter highlights that “we believe that the fair value of TransAlta Renewables over the medium-term is well over the offer price…We hope the board and TransAlta Corporation will seriously consider our position, assess the risk of a failed offer and consider the positive prospect of converting the TransAlta Renewables’ current shareholders into TransAlta Corporation shareholders.”

To read the full letter as written to the boards of TransAlta Renewables and TransAlta Corporation as well as their management teams, click here.

About Ecofin

Ecofin is a sustainable investment firm with roots dating to the 1990s and a global footprint with offices in the US and UK. We are driven by the idea that sustainable investment can deliver strong risk-adjusted returns while making a true impact on the environment and society. Our strategies offer global solutions in private and public securities that address global challenges in climate action, water and sustainable communities. Through these strategies we seek to achieve positive impacts that align with the UN Sustainable Development Goals and are accessible through a variety of vehicles. Ecofin Investments, LLC is the parent of registered investment advisers Ecofin Advisors, LLC and Ecofin Advisors Limited (collectively "Ecofin"). Learn more at www.ecofininvest.com.

Safe harbor statement

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although the fund and TCA believe that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the fund’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Other than as required by law, the fund and TCA do not assume a duty to update this forward-looking statement.

Contact information
For more information contact Eva Lipner at (913) 981-1020 or info@ecofininvest.com.