Alberta Investment Management Corporation (AIMCo) has successfully acquired an 8% stake in TransAlta Renewables an Alberta-based clean power generation company, for the purchase price of CAD$200 million (US$150.3 million), on behalf of certain of its clients, from TransAlta Corporation. In doing so, AIMCo becomes the second largest shareholder in TransAlta Renewables. The transaction is expected to close on November 26, 2015.
TransAlta Renewables owns 16 wind and 12 hydroelectric power generation facilities, and holds economic interests in TransAlta's Wyoming Wind Farm and Australian Assets, having an aggregate installed generating capacity of 1,856 MW, in which it holds a net ownership interest of approximately 1,680 MW. TransAlta Renewables' economic interest in Australian assets consist of 425 MW of power generation from six operating assets, which are operational and contracted under long-term contracts, and the 150 MW South Hedland project that is currently under construction, as well as the recently commissioned 270 km gas pipeline.
The TransAlta Renewables assets are a complement to AIMCo's existing $4 billion of investments in utilities, energy and power, and transportation.
Kevin Uebelein, AIMCo CEO, stated:
"AIMCo is very pleased to become an important investor in TransAlta Renewables. TransAlta has set forth a bold transition plan that will see it become one of North America's preeminent clean power companies. TransAlta Renewables is an important part of that strategy. AIMCo is looking forward to a strong working relationship with TransAlta Renewables. We are also pleased to be making another investment in Alberta, where we currently have approximately $8 billion invested, representing about 9% of AIMCo's assets under management."
Ben Hawkins, Senior Vice President, Infrastructure & Timber, commented:
"AIMCo has gained recognition globally as a major infrastructure investor having grown the infrastructure portfolio to over $4.3 billion in recent years. This investment in TransAlta Renewables provides an attractive addition of a large diversified portfolio of infrastructure assets with stable long-term contracted cash flows for our clients. TransAlta Renewables is well positioned for growth and we look forward to exploring ways to collaborate in that growth going forward."
Dawn Farrell, President and CEO of TransAlta Corporation, added:
"We are pleased to have AIMCo, a high performance investment manager with global experience, join us as a significant investor in TransAlta Renewables. We remain committed to growing TransAlta Renewables and we look forward to a productive partnership with AIMCo."