TransAlta to Acquire Colorado Natural Gas Assets for US$1 Billion

TransAlta (NYSE: TAC) Corporation and its subsidiary, TransAlta Holdings U.S. Inc., signed a purchase and sale agreement on June 3, 2026, to acquire all issued and outstanding equity interests in Mountain Peak Holdco, LLC and Canyon Peak Holdco LLC. The sellers are MPP HoldCo LLC and CPP HoldCo LLC, with Kindle Energy LLC, a Blackstone Inc. portfolio company, acting as their representative.

The acquisition includes two natural gas-fired peaking facilities located in Colorado. Mountain Peak Power is a 162 MW facility situated in Keenesburg, while Canyon Peak Power is a 156 MW facility currently under development in Bennett.

The total purchase price of approximately US$1.0 billion consists of US$250 million in cash and the assumption of US$750 million in senior secured project-level debt. This valuation is subject to standard adjustments as outlined in the purchase agreement.

To fund the cash portion of the acquisition, TransAlta has launched a public offering of common shares. The offering is being conducted through a syndicate of underwriters led by CIBC World Markets Inc. and RBC Dominion Securities Inc. The company has applied to list the new shares on both the Toronto Stock Exchange and the New York Stock Exchange.

TransAlta's existing common shares are currently traded on the TSX under the symbol 'TA' and on the NYSE under the symbol 'TAC.' On June 2, 2026, the final trading day prior to the announcement, the shares closed at $19.83 on the TSX and US$14.34 on the NYSE.