A preliminary prospectus for an initial public offering of shares in TransAlta Renewables to the public has been filed. The Calgary-based independent power producer will transfer 1.112GW of wind and hydropower assets to the new company once the offering is closed in August.
About 86% of the new renewable energy company's assets will be wind projects.
TransAlta expects to hold an 80-85% interest in TransAlta Renewables and earn proceeds of C$200-$250 million from the sale of the remaining 15-20% stake. The company said it would use the money to reduce its debt and shore up its balance sheet.
"We have grown our renewables portfolio to 25% of TransAlta's assets over the past ten years," said TransAlta CEO Dawn Farrell.
"TransAlta Renewables provides us with another effective source of capital for funding growth in renewables which will benefit the shareholders of both companies."