TransAlta Corporation announced it has entered into an Automatic Share Purchase Plan (ASPP) with its broker. This plan is designed to facilitate repurchases of the company's common shares under its existing Normal Course Issuer Bid (NCIB).
The NCIB, approved by the Toronto Stock Exchange, authorizes TransAlta to purchase up to 14,000,000 common shares during the 12-month period from May 31, 2024, to May 30, 2025. Since the inception of this NCIB, the company has already purchased 6,102,300 common shares at a weighted average price of $11.89 per share, totaling approximately $72.5 million.
The ASPP will become effective on April 1, 2025, and will allow share repurchases to occur during periods when TransAlta would typically be restricted from buying shares, such as during regulatory or self-imposed blackout periods. This mechanism ensures a more consistent approach to capital allocation and shareholder returns, with all shares purchased under the ASPP contributing to the NCIB limits and subsequently being cancelled.
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