TA Withdraws Plan of Arrangement

TransAlta Corporation has announced:

that it is not proceeding with the previously announced transaction pursuant to which all the currently outstanding first preferred shares in the capital of the Corporation would be exchanged for shares in a single new series of cumulative redeemable minimum rate reset first preferred shares in the capital of the Corporation. In light of the decision to terminate such transaction, the special meetings of preferred shareholders of the Corporation scheduled for February 16, 2017 have been cancelled.

This is wonderful news – it was a horrible plan, at least so far as investors were concerned; it was only good for the company and bank employees hoping to earn sleaze fees for a favourable vote.

This follows previous posts on this topic:

Affected issues are TA.PR.D, TA.PR.E, TA.PR.F, TA.PR.H and TA.PR.J.

There was high volume but little price change today after the announcement:

Market Movement in TA Issues
Ticker Bid
Change Volume
TA.PR.D 12.89 13.00 +0.85% 785,355
TA.PR.E 13.09 12.70 -2.98% 121,800
TA.PR.F 16.95 16.88 -0.30% 320,371
TA.PR.H 18.88 18.70 -0.95% 393,853
TA.PR.J 19.89 19.80 -0.45% 120,022

2 Responses to “TA Withdraws Plan of Arrangement”

  1. J.B. says:

    Thanks, Mr. Hymas.
    I voted against this exchange offer.
    I think that TransAlta got the early voting trends, and realized that their sleazy plan was dead on arrival. If they had been successful, there would be other issuers trying this scheme on the shareholders.

  2. David says:

    Good for you James. Your noise about this transaction I am certain helped kill it. It is great to see the little guys win over the banks/lawyers/PWC. They should realize it was too aggressive and too greedy. Well done and feel good about helping get to the right outcome.

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