Monday, July 21, 2008

Wind: Investment groups make $7.82B offer for TransAlta (TAC)

From BusinessWeek:

Two investment groups said Monday that they are making a $7.8 billion bid to take Canada's largest generator of wind power private.

Power company LS Power Equity Partners and Global Infrastructure Partners say they have offered $38.84 a share U.S. for Calgary-based TransAlta Corp., a 21 percent premium over Friday's closing stock price of $32.13. TransAlta shares jumped more than 13 percent, or $4.40 to $37.26 in the U.S.

TransAlta is a nearly 100-year-old wholesale power generator whose customers include utilities and corporations in Canada, the U.S. and Australia. It had revenue of $2.77 billion Canadian last year and profits of $308.9 million....MORE

And from the Globe and Mail's Streetwise blog:
The good news for the buyout and private-equity industry is that Credit Suisse is willing to put up $2-billion of debt to fund the potential acquisition of TransAlta Corp., and throw in a $1.5-billion credit facility to help refinance any TransAlta debt. Those are the kinds of numbers rarely seen in the post-crunch buyout world. (The press release detailing the financing is available here.)>>>MORE