CALGARY, March 25, 2019 /PRNewswire/ - TransAlta Corporation
("TransAlta" or the "Company") (TSX:TA) (NYSE:TAC) said today it has received notice under its Advance Notice By-Law that
Mangrove Partners intends to nominate five candidates for election to the Company's Board of Directors at TransAlta's upcoming
Annual and Special Meeting of Shareholders (the "Meeting").
TransAlta said it will review Mangrove's notice, consider the suitability of its nominees and communicate more fully with its
shareholder in due course.
Earlier today, TransAlta announced a strategic $750 million investment by Brookfield Renewable
Partners and its institutional partners (collectively "Brookfield") that crystalizes the value of the Company's Hydro Assets,
enhances its financial position to execute its strategy, and accelerates the opportunity to return capital to shareholders. This
investment will ensure TransAlta will transition to 100% clean energy by 2025. In addition, Brookfield has committed to purchase TransAlta common shares on the open market to increase its share
ownership in TransAlta to 9%.
As part of today's announcement, TransAlta said it will include two experienced Brookfield
nominees, Harry Goldgut and Richard Legault, as well as
Robert Flexon, former CEO of Dynegy, on its slate of directors for election at the Meeting.
Mr. Goldgut, Mr. Legault and Mr. Flexon have impressive track records in renewable energy, thermal energy, infrastructure and
value creation in rapidly evolving electricity markets.
Finally, in addition to bringing this exceptional expertise onto the TransAlta board, TransAlta also announced it and
Brookfield will form a joint operating committee, for a period of six years, to focus on
optimizing the operations and maximizing the value of TransAlta's Hydro Assets. The committee will consist of two Brookfield members, who are not nominees to the Board, with expertise in hydro facility management and two
TransAlta members. Combined with work TransAlta has already done with an internationally respected management consultancy firm to
streamline its operations resulting in additions to annual gross margin and reductions to annual operating expenses and capital
by approximately $70 million, the Company continues to strengthen its operational performance at
the same time that it is advancing its transition to clean energy and growth strategy.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should",
"propose", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More
particularly, and without limitation, this news release contains forward-looking statements and information relating to: the
Meeting; the investment by Brookfield; ability of the investment to enhance the Company's
financial position and ability to execute the strategy; the transition to 100% clean energy by 2025; Brookfield increasing its share ownership in TransAlta to 9%; the formation of a joint operating committee;
continued operational improvements; and advancements in the Company's strategy relating to clean energy and growth. These
statements are based on TransAlta's belief and assumptions based on information available at the time the assumptions were made,
including assumptions pertaining to: the election of the Brookfield nominees, the closing of the
Brookfield investment and no significant changes to regulatory or market environments. The
forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially
from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include: the
failure of the Company's nominees to be elected at the 2019 annual and special meeting of shareholders; the failure of the
Brookfield investment to close; legal actions or proceedings, including those pertaining to the
Brookfield investment; the appointment of the slate of directors proposed by Mangrove Partners
and the subsequent termination of the Brookfield investment by the Board; and other risk
factors contained in the Company's annual information form and management's discussion and analysis. Readers are cautioned not to
place undue reliance on these forward-looking statements or forward-looking information, which reflect TransAlta's expectations
only as of the date of this news release. TransAlta disclaims any intention or obligation to update or revise these
forward-looking statements, whether as a result of new information, future events or otherwise, except as required by
law.
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SOURCE TransAlta Corporation