TransAlta Corporation Enters Into Automatic Share Purchase Plan Under The Company's Previously Announced Normal Course Issuer Bid
Portfolio Pulse from Benzinga Newsdesk
TransAlta Corporation (NYSE:TAC) has initiated an automatic share purchase plan (ASPP) to facilitate the repurchase of its common shares under its normal course issuer bid (NCIB). The NCIB, approved by the TSX, allows for the buyback of up to 14 million shares from May 31, 2023, to May 30, 2024. As of now, TransAlta has bought back 6,989,000 shares at an average price of $11.53 and 871,100 shares at $10.92 under the current NCIB. The ASPP enables share repurchases during regulatory or self-imposed blackout periods. TransAlta believes the buybacks are a good use of funds, reflecting its commitment to shareholder returns and supported by strong free cash flow. The ASPP will be effective January 1, 2024, and will end on the earliest of reaching the maximum limit, February 24, 2024, or if the company terminates it.
December 19, 2023 | 3:06 pm
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POSITIVE IMPACT
TransAlta Corporation has begun an ASPP to buy back shares, signaling confidence in its stock value and a commitment to shareholder returns. The company has already repurchased shares under the NCIB, indicating an active approach to capital allocation.
The initiation of an ASPP typically signals a company's belief that its stock is undervalued and that repurchasing shares is a beneficial use of capital. This can be perceived positively by the market, potentially leading to a short-term increase in stock price. The company's strong free cash flow and the amount of shares already repurchased under the NCIB further support the potential positive impact on the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100