Brookfield Sells 8.6 Million Shares in TransAlta Corporation for Approximately C$169 Million

Brookfield sold 8.6 million shares of TransAlta for C$168.99 million, reducing ownership to 9%.

Quiver AI Summary

Brookfield, through its renewable power and transition business, sold 8,600,000 common shares of TransAlta Corporation for approximately C$168,990,000 at a price of C$19.65 per share. Prior to the sale, Brookfield owned around 11.9% of TransAlta's shares, which decreased to about 9% post-transaction. The share disposition aligns Brookfield's ownership with certain agreement thresholds. While there are currently no specific plans for further share sales, Brookfield may consider future transactions based on various factors like share price and liquidity objectives. An Early Warning Report will be filed, providing additional details on the transaction.

Potential Positives

• Brookfield raised approximately C$168,990,000 through the sale of 8,600,000 common shares, providing significant liquidity for its renewable power and transition business.
• The transaction aligns Brookfield’s share ownership with specific thresholds under various agreements, indicating a strategic adjustment in their investment position.
• Following the sale, Brookfield maintains a significant ownership stake in TransAlta Corporation, with approximately 9% of the issued and outstanding common shares, allowing continued influence in the company.

Potential Negatives

• Brookfield has reduced its stake in TransAlta Corporation from approximately 11.9% to 9%, indicating a significant decrease in confidence or investment commitment in the company.
• The transaction could raise concerns among investors about Brookfield's long-term strategy and liquidity objectives, given the potential for further dispositions of shares in the future.

FAQ

What was the total amount Brookfield received from the TransAlta share sale?

Brookfield received approximately C$168,990,000 from the sale of 8,600,000 common shares in TransAlta Corporation.

What percentage of TransAlta shares does Brookfield own after the sale?

After the transaction, Brookfield owns approximately 9% of the issued and outstanding common shares of TransAlta.

Why did Brookfield sell its shares in TransAlta?

The sale aligns Brookfield's aggregate share ownership with certain thresholds under various agreements.

Will Brookfield sell more shares in TransAlta in the future?

Currently, there are no specific plans for further dispositions, but future sales are possible based on various factors.

Where can I find the Early Warning Report for this transaction?

The Early Warning Report can be obtained from the SEDAR+ profile of TransAlta at www.sedarplus.ca.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$BN Hedge Fund Activity

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Here are some of the largest recent moves:

• PERSHING SQUARE CAPITAL MANAGEMENT, L.P. added 25,881,373 shares (+377.6%) to their portfolio in Q3 2024
• SELECT EQUITY GROUP, L.P. added 9,723,279 shares (+inf%) to their portfolio in Q3 2024
• LEGAL & GENERAL GROUP PLC added 9,643,874 shares (+4085.4%) to their portfolio in Q3 2024
• FIL LTD added 6,760,261 shares (+56.6%) to their portfolio in Q3 2024
• HUDSON BAY CAPITAL MANAGEMENT LP removed 6,500,000 shares (-100.0%) from their portfolio in Q3 2024
• ROYAL BANK OF CANADA removed 6,356,792 shares (-7.0%) from their portfolio in Q3 2024
• THIRD POINT LLC added 4,725,000 shares (+inf%) to their portfolio in Q3 2024

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Full Release

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BROOKFIELD, NEWS, Jan. 07, 2025 (GLOBE NEWSWIRE) -- Brookfield, through its renewable power and transition business, alongside institutional partners (collectively, “Brookfield”), sold in aggregate 8,600,000 common shares (the “Common Shares”) in the capital of TransAlta Corporation (“TransAlta”) on the Toronto Stock Exchange for aggregate gross cash consideration of approximately C$168,990,000, at a price of C$19.65 per Common Share (the “Transaction”).

Prior to giving effect to the Transaction, Brookfield owned or had control over an aggregate of 35,523,345 Common Shares representing approximately 11.9% of the issued and outstanding Common Shares, calculated on an undiluted basis. Following the Transaction, Brookfield owned or had control over an aggregate of 26,923,345 Common Shares, representing approximately 9% of the issued and outstanding Common Shares, calculated on an undiluted basis, a decrease of approximately 2.9%. In accordance with National Instrument 62-103, an Early Warning Report with additional information in respect of the foregoing matters will be filed by Brookfield in respect of the Transaction. A copy of such report may be obtained from the SEDAR+ profile of TransAlta at

www.sedarplus.ca

.

The disposition of the Common Shares more closely aligns Brookfield’s aggregate share ownership with certain thresholds under various agreements. Although there are no current specific plans or proposals for further dispositions of the Common Shares, Brookfield may, at any time and from time to time, subject to compliance at all relevant times with certain agreements and regulatory requirements and applicable securities laws, terminate in whole or in part, dispose of or distribute some or all of its Common Shares or such other securities it owns or may subsequently acquire, depending on various factors, including the price of the Common Shares; terms and conditions applicable to any potential transaction; liquidity and diversification objectives of Brookfield; and such other factors that it deems relevant at any time or from time to time.

TransAlta’s head office is located at Transalta Place, 1400-1100 1st St S.E., Calgary, Alberta, T2G 1B1, Canada.

For more information, please visit our website at

www.bn.brookfield.com

or contact:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.