TransAlta extends Canadian Hydro buyout offer

TransAlta extends Canadian Hydro buyout offer until September 22 after ruling by regulators

• On 6:18 pm EDT, Wednesday September 9, 2009

CALGARY, Alberta (AP) -- Canadian power producer TransAlta Corp. said Wednesday it has extended its offer to acquire Canadian Hydro Developers until 6 p.m. on Sept. 22.

The company said the extension comes after Alberta regulators ordered the withdrawal of a Canadian Hydro shareholder rights plan as of Sept. 21.

The transaction, which amounts to $4.11 per share (4.55 Canadian), would accelerate TransAlta's plan to become the largest publicly traded provider of renewable energy in Canada.

Its offer amounts to $591 million based on Canadian Hydro's 143.8 million shares outstanding at the end of the second quarter.

The offer represents a premium of 30 percent over a weighted average of the closing price of Canadian Hydro Developers shares over the 10 trading days through July 20.

Canadian Hydro Developers operates wind, hydro and biomass facilities in Alberta, Ontario, Quebec and British Columbia. It also has development projects in western and eastern Canada.

Shares of TransAlta fell 5 cents to close at $19.35.