TransAlta Shareholder Dispute to Be Heard by Alberta Securities Commission


TransAlta (TAC), the Canadian power producer, late Monday updated shareholders on proceedings sought by dissident shareholder Mangrove Partners before the Ontario and Alberta Securities Commissions.

US-based Mangrove Partners, together with Bluescape Energy Partners, hold about 10% of TransAlta’s shares, and have asked the Alberta and Ontario securities commissions to force a delay in the upcoming April 26 TransAlta annual shareholder meeting until at least June 1.

TransAlta said the Ontario Securities Commission has decided to defer to the Alberta commission as TransAlta’s principal regulator

TransAlta said the next step is for Mangrove to seek permission from the Alberta commission to pursue its complaints against TransAlta. The Alberta commission will render an oral decision slated for April 18.

TransAlta said it will vigorously contest the Mangrove complaints, if the activist shareholders are granted permission to pursue their case.

TransAlta announced recently that Brookfield Renewable Partners and its institutional partners had signed a CAD750-million ($561 million) deal to invest in the company’s hydro assets, adding Brookfield would also purchase shares to increase its stake to 9%. The dissident shareholders have said they have not had time to analyze the investment and are concerned about potential conflicts of interest.