Canadian Hydro Developers Inc.'s board of directors has unanimously recommended that the company's shareholders reject TransAlta's unsolicited offer and take-over bid.
Canadian Hydro's board has performed a thorough review and evaluation of the unsolicited TransAlta offer with its independent financial and legal advisors and has concluded that the TransAlta offer is inadequate and contrary to the interests of Canadian Hydro and its shareholders. The board therefore unanimously recommends that Canadian Hydro shareholders reject the TransAlta offer by not tendering their shares.
‘This offer is inadequate, and its timing is purely opportunistic,’ says Kent Brown, CEO of Canadian Hydro. ‘We're at a key inflection point in our company's 20-year history as we begin to reap the financial rewards of our significant development investments.’
Canadian Hydro's board has advised shareholders to take no action, thereby rejecting the TransAlta offer. The independent Special Committee of the board of directors has been established to review and consider various initiatives, with the objective of enhancing shareholder value, and as part of this process, the company's financial advisors, FirstEnergy Capital Corp. and Societe Generale, have been instructed to open a data room for qualified interested parties.
SOURCE: Canadian Hydro
