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UPDATE: TransAlta Corp Down 4% at Midday, Hits New Yr Lows; Announces Acquisition Of Solomon Power Station In Western Australia

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Canadian power producer TransAlta Corp (TA.TO), which has hit fresh year low levels today, said its unit entered into an agreement with Fortescue Metals Group Ltd to buy a 125 megawatt dual-fuel power station in Western Australia for US$318 million. TransAlta also sold 19.3 million common shares for nearly C$275 million (US$278.78 million) in connection with the deal.

The 125-MW Solomon power station will be fully contracted with Fortescue under a long-term power purchase agreement. The under-construction power station will likely be commissioned in the fourth quarter.

TransAlta is now trading at $14.10, on volume 4.58 million, making it the third most actively traded on the TSX at midday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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