TransAlta Corporation announced that the Toronto Stock Exchange ("TSX") has accepted the notice filed by the Company to implement a normal course issuer bid ("NCIB") for a portion of its common shares ("Common Shares").
Pursuant to the NCIB, TransAlta may repurchase up to a maximum of 14,000,000 Common Shares, representing approximately 7.29% of its public float of Common Shares, where the aggregate "public float" (as defined by the TSX) as at May 17, 2023, was 192,048,191 Common Shares. Purchases under the NCIB may be made through open market transactions on the TSX and any alternative Canadian trading platforms on which the Common Shares are traded, based on the prevailing market price. Any Common Shares purchased under the NCIB will be cancelled.
Transactions under the NCIB will depend on future market conditions. TransAlta will initially retain discretion whether to make purchases under the NCIB, and to determine the timing, amount and acceptable price of any such purchases, subject at all times to applicable TSX and other regulatory requirements. The period during which TransAlta is authorized to make purchases under the NCIB commences on May 31, 2023 and ends on May 30, 2024 or such earlier date on which the maximum number of Common Shares are purchased under the NCIB or the NCIB is terminated at the Company's election.
Under TSX rules, not more than 150,222 Common Shares (being 25% of the average daily trading volume on the TSX of 600,891 Common Shares for the six months ended April 30, 2023) can be purchased on the TSX on any single trading day under the NCIB, with the exception that one block purchase in excess of the daily maximum is permitted per calendar week. As at May 17, 2023, there were 263,330,038 Common Shares issued and outstanding.
TransAlta has repurchased and cancelled 8,549,500 Common Shares on the open market through the facilities of the TSX and/or alternative Canadian trading systems at an average price of $11.86 per share under its prior NCIB approved by the TSX on May 24, 2022 for the twelve-month period commencing May 31, 2022.
The NCIB provides the Company with a capital allocation alternative with a view to long-term shareholder value. TransAlta's Board of Directors and Management believe that, from time to time, the market price of the Common Shares does not reflect their underlying value and purchases of Common Shares for cancellation under the NCIB may provide an opportunity to enhance shareholder value.