TransAlta strikes $750M hydro deal with Brookfield Renewable Partners

TransAlta Corp. says Brookfield Renewable Partners and its institutional partners have signed a $750-million deal to invest in the company's hydro assets.

Under the terms of the agreement, Brookfield will acquire exchangeable securities, which will be convertible into an equity ownership interest in TransAlta's Alberta hydro assets.

Brookfield will also purchase TransAlta common shares on the open market to increase its share ownership stake to nine per cent.

TransAlta says it will include two Brookfield nominees, Harry Goldgut and Richard Legault, on its slate of directors for election at the upcoming 2019 annual shareholders' meeting.

It says it will use $350 million of the investment to speed the company's coal-to-gas transition strategy and up to $250 million to buy back shares over three years.

The remainder of the investment will be used to advance the development of existing and new growth projects, and for general corporate purposes.

TransAlta shares were up four per cent on the news at $9.48 Cdn.