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Bruce Flatt, CEO of Brookfield Asset Management Inc., speaks at the 21st Milken Institute Global Conference in Beverly Hills, California on May 1, 2018. REUTERS / Lucy Nicholson
(Reuters) – TransAlta Corp. of Canada announced Monday that Brookfield Asset Management would invest C $ 750 million ($ 559.1 million) in the company, which intends to become a clean energy producer by 2025.
The investment of Brookfield Renewable Partners, majority owned by the Canadian-based badet manager, will in the future be convertible into a property of TransAlta's hydroelectric badets in Alberta, TransAlta said in a statement. Brookfield currently owns approximately 5% of the company.
The badet manager also agreed to buy shares of the company to increase its stake to 9%, TransAlta said.
Calgary-based TransAlta has recently been under scrutiny by shareholders for losses.
Meanwhile, activist investor Mangrove Partners has notified TransAlta of its intention to nominate five candidates for election to the TransAlta Board of Directors at its annual meeting. TransAlta will review Mangrove's opinion, he said in a separate statement.
Last week, Mangrove Partners and Bluescape Energy Partners requested changes to TransAlta's management structure.
As part of the latest investment agreement with Brookfield, TransAlta announced that it would add Harry Goldgut and Richard Legault, both Brookfield nominees, to its list of election candidates at the April 26th annual meeting.
TransAlta also announced that Brookfield would form, for a six-year period, a joint committee of experts to optimize the operations of TransAlta's hydroelectric badets.
The company plans to invest C $ 350 million in Brookfield's investment to advance its coal-to-gas transition strategy, up to C $ 250 million to buy back shares over three years, and the rest to develop existing and new projects.
Report by Debroop Roy; additional reports from Bhanu Pratap to Bengaluru; Edited by Shinjini Ganguli and Gopakumar Warrier
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