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COMPANIES: Hong Kong’s Cheung Kong to take over TransAlta Power for $629 million
        (AlbertaIndex October 15, Monday) --- TSX-listed TransAlta Power, LP said it has agreed to be bought out by Hong Kong’s Cheung Kong Infrastructure Holdings Limited (CKI) for $8.38 a share in cash for a total of $629 million.         The purchase price represents a 15.7 per cent premium over TransAlta Power's closing share price on the TSX on October 12, the last trading day prior to this announcement. The all-cash transaction excludes debt.  Under certain circumstances, TransAlta Power said it has agreed to pay a non-completion fee of $17 million to CKI.

“The board is pleased to announce the successful completion of the strategic review process conducted by the independent committee,” said Stephen Mulherin, chairman of the General Partner of TransAlta Power, TransAlta Power Ltd.

“Through the process we reviewed a myriad of alternative proposals.  The board has concluded that the sale to CKI provides the best opportunity to maximize unitholder value.”

CKI is the largest publicly listed infrastructure company in Hong Kong with diversified investments in energy, transportation, water and businesses related to infrastructure. Operating in Hong Kong, China, Australia, the UK, Canada and the Philippines, it is a leading player in the global infrastructure arena.

CKI’s expansive energy portfolio comprises both electricity generation and distribution assets, as well as gas companies all over the world.

On May 22, TransAlta Power had announced that an independent committee of the board of TransAlta Power Ltd was conducting a review of strategic alternatives for the purpose of maximizing value for shareholders.

On the basis of a review of the strategic alternatives, the committee recommended to the board to accept CKI’s offer.
BMO Capital Markets acted as financial advisor to TransAlta Power Ltd.

Following a thorough review, consultation with its legal and financial advisors and recommendation of the committee, the board unanimously determined the offer to be fair to shareholders.

TransAlta Power LP owns a 49.99 per cent interest in TransAlta Cogeneration, LP, which owns interests in five gas-fired cogeneration facilities in Ontario, Alberta and Saskatchewan and in a coal-fired, mine-mouth facility in Alberta.  These facilities have a total generating capacity of 1,362 megawatts of electric power, all of which is sold under long-term contracts to high-quality counterparties. TransAlta Cogeneration’s net ownership is 815 megawatts.

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