The shareholders of TransAlta Corp. and TransAlta Renewables Inc. have agreed to the terms of a plan of arrangement, resulting in the combination of the two companies. Each share of TransAlta Renewables will be exchanged for 1.0337 shares of TransAlta or $13 in cash, subject to proration of a maximum amount of cash of $800-million and a maximum number of TransAlta shares issued of 46.4 million.

TransAlta Renewables will be removed from the S&P/TSX Composite Index prior to the open of trading on Oct. 10, 2023. The shares outstanding of TransAlta will be increased at the same time to reflect the issuance of shares.