TransAlta Power spokesman Michael Lawrence said the Cheung Kong deal was the best available for the unitholders after Ottawa's move to impose corporate tax rates on flow-through investment vehicles like TransAlta Power LP "required that we find an alternative business model, as that structure wouldn't be sustainable." Source: The Toronto Star
TransAlta Power, L.P. agrees to be acquired
CALGARY, ALBERTA--(Marketwire - Oct. 15, 2007) - TransAlta Power, L.P. (TransAlta Power) (TSX:TPW.UN) today announced it has entered into a support agreement (the Support Agreement) with Cheung Kong Infrastructure Holdings Limited (CKI), pursuant to which CKI has agreed to offer $8.38 in cash per unit (the Offer) to acquire all of the outstanding units of TransAlta Power. The purchase price under the Offer represents a 15.7 per cent premium over the closing trading price of the units on the TSX on October 12, 2007, the last trading day immediately prior to this announcement. The all-cash transaction is valued at approximately $629 million, excluding debt. Under certain circumstances, TransAlta Power has agreed to pay a non-completion fee of $17 million to CKI.
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