CALGARY, AB - TransAlta (NYSE:TAC) Corporation (TSX:TA) (NYSE:TAC), a leading Canadian electricity power generator, has engaged in an automatic share purchase plan (ASPP) with its broker to facilitate the repurchase of its common shares. This move is part of the company's normal course issuer bid (NCIB), which was previously approved by the Toronto Stock Exchange (TSX).
Under the NCIB, which began on May 31, 2023, TransAlta is authorized to buy back up to 14 million of its common shares by May 30, 2024. Transactions will be conducted through the open market on the TSX and alternative Canadian trading systems, contingent on the market price at the time of purchase.
Since the start of 2024, the company has acquired 2,710,300 shares at a weighted average price of $9.52, totaling approximately $25.8 million. Overall, since the NCIB's inception, TransAlta has repurchased 4,134,900 shares at an average price of $10.01 per share, amounting to roughly $41.4 million.
The establishment of the ASPP is intended to allow for share repurchases during periods when TransAlta would not typically be able to buy back shares due to regulatory restrictions or self-imposed blackout periods.
The company's decision to buy back shares is driven by the belief that the market price at times does not reflect the true underlying value of the shares. The ASPP enables the broker to purchase shares autonomously based on parameters set by TransAlta in accordance with TSX rules and applicable laws.
The ASPP will become effective on April 1, 2024, and will continue until the earliest of the following: the maximum purchase limits are met, May 3, 2024, or the company decides to terminate the plan according to its terms. The TSX has pre-cleared the ASPP, and all shares bought under this plan will be counted towards the NCIB and subsequently cancelled.
TransAlta, with over a century of operation, is committed to sustainable energy production and has significantly reduced its greenhouse gas emissions in recent years. The company aligns with the UN Sustainable Development Goals and has received recognition for its environmental, social, and governance (ESG) efforts.
This news is based on a press release statement from TransAlta Corporation.
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