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